摘要：This research aims to study the impact of the target's ESG score on the acquirer's ROA and stock price changes after M&A deals by regressing the percentage change of acquirer's performance change against the target's ESG score and a set of control variables. This research contributes to the current literature by exploring whether this impact is influenced by the acquirer's pre-M&A ESG level through two methods—expressing the coefficient of the target's ESG as s linear function of the acquirer's ESG and dividing the deals into two groups according to the acquirer's ESG level. The result of shows that the impact of the target's ESG score on the acquirer's ROA change is significant at 95% confidence level and varies for low-ESG and high-ESG acquirer groups. Although most acquirers suffer ROA declines one year after the deals, the ROA decline is aggravated for low-ESG acquirers but is relieved for high-ESG acquirers. This discrepancy can be attributed to the temporary integration costs that are higher for low-ESG acquirers than for high-ESG peers if the target's ESG level increases. Besides, this research concludes that the impact of the target's ESG score does not have a significant impact on the acquirer's stock price change before and after an M&A deal.
