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The implications of Socially Responsible Investments - Taking on the perspective of M&As

Haas, Isabel LU and Nytorp, Julia LU (2018) BUSN79 20181
Department of Business Administration
Abstract (Swedish)
There is an increased interest not only in sustainability but also in becoming socially responsible due to greater awareness as well as pressure from stakeholders. Contradictive results are found on whether Socially Responsible Investments (SRIs) in the area of funds are outperforming conventional funds. Further, in the area of Mergers and Acquisitions (M&As), there is plenty of research identifying characteristics influencing performance. However, research fails to combine the perspectives of both areas in order to generate new insights. This is the purpose of this study which found that an acquisition of a highly Socially Responsible (SR)-Target has a negative effect on Post-Deal Performance, although the impact appears to be relatively... (More)
There is an increased interest not only in sustainability but also in becoming socially responsible due to greater awareness as well as pressure from stakeholders. Contradictive results are found on whether Socially Responsible Investments (SRIs) in the area of funds are outperforming conventional funds. Further, in the area of Mergers and Acquisitions (M&As), there is plenty of research identifying characteristics influencing performance. However, research fails to combine the perspectives of both areas in order to generate new insights. This is the purpose of this study which found that an acquisition of a highly Socially Responsible (SR)-Target has a negative effect on Post-Deal Performance, although the impact appears to be relatively small in monetary terms. Despite the adverse reaction on Socially Responsible M&As (SR-M&As), a trend towards acquisitions of higher-rated socially responsible targets can be identified. The study claims that a potential explanation is that the market is unwilling or unable to fully identify and evaluate the complexity of SR-M&As in an efficient way. (Less)
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author
Haas, Isabel LU and Nytorp, Julia LU
supervisor
organization
course
BUSN79 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
ESG-Score, Mergers and Acquisitions (M&As), Post-Deal Performance, Socially Responsible Investment (SRI), Socially Responsible (SR)-Target, SRI Funds
language
English
id
8959138
date added to LUP
2018-10-08 11:42:05
date last changed
2018-10-08 11:42:05
@misc{8959138,
  abstract     = {There is an increased interest not only in sustainability but also in becoming socially responsible due to greater awareness as well as pressure from stakeholders. Contradictive results are found on whether Socially Responsible Investments (SRIs) in the area of funds are outperforming conventional funds. Further, in the area of Mergers and Acquisitions (M&As), there is plenty of research identifying characteristics influencing performance. However, research fails to combine the perspectives of both areas in order to generate new insights. This is the purpose of this study which found that an acquisition of a highly Socially Responsible (SR)-Target has a negative effect on Post-Deal Performance, although the impact appears to be relatively small in monetary terms. Despite the adverse reaction on Socially Responsible M&As (SR-M&As), a trend towards acquisitions of higher-rated socially responsible targets can be identified. The study claims that a potential explanation is that the market is unwilling or unable to fully identify and evaluate the complexity of SR-M&As in an efficient way.},
  author       = {Haas, Isabel and Nytorp, Julia},
  keyword      = {ESG-Score,Mergers and Acquisitions (M&As),Post-Deal Performance,Socially Responsible Investment (SRI),Socially Responsible (SR)-Target,SRI Funds},
  language     = {eng},
  note         = {Student Paper},
  title        = {The implications of Socially Responsible Investments - Taking on the perspective of M&As},
  year         = {2018},
}