We are glad to announce that Ramakrishna Mission Vivekananda Educational and Research Institute (RKMVERI) will be conducting a special colloquium on “Environmental and Social Convergence Through Cross-border Acquisitions: Evidence from Emerging Market Multinationals” on 01 Dec 2023, 12 noon at Seminar Hall, Narendrapur Campus.

Speaker : Prof Kaustav Sen, Pace University
Co-ordinator: Prof. Abhijit Chakrabarti

Abstract

Emerging market multinational firms (EMNEs) have increased their access into developed markets over the recent years through cross-border acquisitions. Since there is a growing emphasis on stakeholder approach and sustainability in current business practices, we examine the changes in environmental, social and governance (ESG) measures of EMNEs after accessing developed markets. Our results suggest that EMNE acquirers substantially improve on environmental and social performance in two years after acquiring developed market targets. We provide support for bonding and legitimacy-enhancing as EMNE firms improve the ESG attributes that are more prominent in the target country of acquisition. Furthermore, we explore the sensitivity of the post-event performance to various sustainability aspects and find that environmental and social changes also have value implications.