Climate Risk Impact on Cross-Border Acquisitions

Authors

  • Igor Semenenko Acadia University
  • Junwook Yoo California State University East Bay

DOI:

https://doi.org/10.33423/jabe.v22i10.3726

Keywords:

Business, Economics, climate change, climate risk index, cross-border acquisitions, premium for control

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.

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Published

2020-12-12

How to Cite

Semenenko, I., & Yoo, J. (2020). Climate Risk Impact on Cross-Border Acquisitions. Journal of Applied Business and Economics, 22(10). https://doi.org/10.33423/jabe.v22i10.3726

Issue

Vol. 22 No. 10 (2020)

Section

Articles

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