ESG factors in M&A in India: Performance and market insights from 2010 to 2023


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study assesses the impact of mergers and acquisitions on Environmental, Social, and Governance (ESG) performance and market value of acquiring companies operating in India. Data were collected and analyzed from 69 M&A announcements from January 2010 to June 2023, sourced from the Bloomberg database. The analysis reveals a positive correlation between the post-merger market value of acquiring firms and their ESG performance, indicating that an improvement in ESG factors is associated with increased market value after mergers. Additionally, a positive correlation was identified between acquiring companies’ post-merger ESG performance and their target firms’ pre-merger ESG performance. This finding suggests that when acquiring a target firm with high ESG performance, the acquirer is likely to experience an improvement in its own post-merger ESG performance. Moreover, both the post-merger market value and ESG performance of the acquirer are likely to improve with the profitability and size of firms but will have a negative impact based on the leverage components of the acquiring firms. 

view full abstract hide full abstract
    • Table 1. Data and variables
    • Table 2. Data and variables used for analysis
    • Table 3. Sample selection for the study
    • Table 4. Descriptive statistics of all variables
    • Table 5. Correlation matrix
    • Table 6. Regression coefficients
    • Conceptualization
      Manoj Panda, Pankaj Sharma, Vasa László, Vinod Sharma
    • Data curation
      Manoj Panda
    • Investigation
      Manoj Panda
    • Methodology
      Manoj Panda, Pankaj Sharma, Manohar Kapse
    • Supervision
      Manoj Panda, Pankaj Sharma, Vasa László, Yogesh Mahajan
    • Validation
      Manoj Panda, Pankaj Sharma, Vinod Sharma
    • Writing – original draft
      Manoj Panda, Pankaj Sharma
    • Project administration
      Pankaj Sharma, Vinod Sharma
    • Funding acquisition
      Vasa László, Yogesh Mahajan
    • Writing – review & editing
      Vasa László, Manohar Kapse, Vinod Sharma, Yogesh Mahajan
    • Formal Analysis
      Manohar Kapse
    • Software
      Manohar Kapse
    • Resources
      Vinod Sharma, Yogesh Mahajan
    • Visualization
      Vinod Sharma