Li Hao, Liu Yue, Xu Bing
Cardiff Business School, Cardiff University, Cardiff, CF10 3EU, UK.
University of Edinburgh Business School, 29 Buccleuch Place, Edinburgh, EH8 9JS, UK.
J Environ Manage. 2023 Oct 15;344:118439. doi: 10.1016/j.jenvman.2023.118439. Epub 2023 Jun 24.
The impact of climate risk on the payment method in cross-border M&A remains largely unknown in the literature. Using a large sample of UK outbound cross-border M&A deals in 73 target countries from 2008 to 2020, we find that a UK acquirer is more likely to employ an all-cash offer to signal its confidence in a target's value if the target country faces a higher level of climate risk. This finding is consistent with the confidence signalling theory. Our results also suggest that acquirers are less likely to target vulnerable industries if target countries' climate risk is high. In addition, we document that the presence of geopolitical risk would weaken the association between payment method and climate risk. Our findings are robust to the use of an instrumental variable approach and alternative measures of climate risk.
气候风险对跨境并购支付方式的影响在文献中很大程度上仍不为人知。利用2008年至2020年在73个目标国家进行的大量英国对外跨境并购交易样本，我们发现，如果目标国家面临更高水平的气候风险，英国收购方更有可能采用全现金报价来表明其对目标价值的信心。这一发现与信心信号理论一致。我们的结果还表明，如果目标国家的气候风险很高，收购方不太可能将脆弱行业作为目标。此外，我们记录到地缘政治风险的存在会削弱支付方式与气候风险之间的关联。我们的研究结果在使用工具变量法和气候风险替代衡量指标时具有稳健性。
