Prof. Kaustav Sen is a Professor at Lubin School of Business Pace University, New York. He has presented at the Public Company Accounting Oversight Board, been awarded funding by the National Stock Exchange of India, has received best paper awards from the American Accounting Association (Ohio) and the Securities Exchange Board of India, and has been cited by the Economist. In the past, he served as the Accounting Department’s Ernst & Young scholar. Read More
Lubin School of Business Pace University, New York.
November 16, 2023
Environmental and Social Convergence Through Cross-border Acquisitions: Evidence from Emerging Market Multinationals (co-author Burcin Col).
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 incurrent business practices, we examine the changes in environmental, social and governance (ESG) measures of EMNEsafter 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 but not social changes have value implications.
