JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Climate Risk Impact on Cross-Border Acquisitions
Author(s): Igor Semenenko, Junwook Yoo
Citation: Igor Semenenko, Junwook Yoo, (2020) "Climate Risk Impact on Cross-Border Acquisitions," Journal of Applied Business and Economics, Vol. 22, Iss.10, pp. 255-263
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This article examines impact of climate risks on premium paid in cross-border acquisitions. Results suggest that acquirors from high climate risk geographies tend to offer larger premiums. The results are driven by transactions, in which majority stakes exchange hands, and premium for control is paid to target firm shareholders. There is mild evidence that premiums for control are also higher for targets in low climate risk nations.