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- Title
Managing Climate Change Risks: Sea-Level Rise and Mergers and Acquisitions.
- Authors
Bai, John Jianqiu; Chu, Yongqiang; Shen, Chen; Wan, Chi
- Abstract
Using a large sample over the period 1986 to 2017, we show that companies with higher exposure to climate change risk induced by sea-level rise (SLR) tend to acquire firms that are unlikely to be directly affected by SLR. We find that acquirers with higher SLR exposure experience significantly higher announcement-period abnormal stock returns. Analyses using failed merger bids as an exogenous shock show that post-merger, analyst forecasts become more accurate and environmental-related as well as overall ESG scores improve.
- Subjects
MERGERS &; acquisitions; ABSOLUTE sea level change; CLIMATE change; RATE of return on stocks; ABNORMAL returns
- Publication
Quarterly Journal of Finance, 2024, Vol 14, Issue 1, p1
- ISSN
2010-1392
- Publication type
Article
- DOI
10.1142/S201013922450006X