Green M&As: Shareholder Value Creation and Sustainability in Post-Acquisition Performance

This thesis investigates the evolving role of sustainability in mergers and acquisitions (M&As), with a specific focus on Green M&As, where environmental, social, and governance (ESG) factors are integrated into the transaction process. Historically, M&As have been driven by financial objectives such as cost efficiencies and market expansion. However, recent trends indicate a shift towards incorporating sustainability goals alongside profitability, driven by increasing pressure from regulators, investors, and stakeholders for responsible corporate governance. The objective of this thesis is to examine the impact of Green M&As on shareholder value creation and sustainability performance post-acquisition. The research aims to address key questions, including how Green M&As influence long-term shareholder value creation and whether these transactions allow companies to balance financial objectives with ESG commitments. To achieve this, the study employs a mixed-methods approach. The quantitative analysis utilizes a Difference-in-Differences (DiD) estimation model to assess the causal effects of Green M&As on both financial and ESG performance, comparing outcomes between firms that have engaged in Green M&As and a control group over the period from 2012 to 2022, using data from Truvalue Labs by Factset. The qualitative component explores the strategic motivations and governance implications of Green M&As, providing a comprehensive understanding of their role in corporate strategy. The findings contribute to the academic discourse on sustainable business practices and corporate governance, offering insights into how Green M&As can drive long-term shareholder value creation while enhancing sustainability performance. The thesis concludes by discussing the implications for corporate practice and future research, particularly regarding the long-term effects of these transactions on corporate governance and sustainability outcomes.