Environmental innovation and takeover performance

Tanveer Hussain; Abongeh A. Tunyi; Geofry Areneke

doi:10.1002/bse.3822

journal article Open Access Jun 07, 2024

Environmental innovation and takeover performance

Tanveer Hussain

Abongeh A. Tunyi

Geofry Areneke

Business Strategy and the Environment Vol. 33 No. 7 pp. 6586-6615 · Wiley

View at Publisher Save 10.1002/bse.3822

Abstract

AbstractDrawing from the resource‐based view (RBV), we examine the effect of environmental innovation on mergers and acquisitions (M&As) announcement returns. Using an international sample of M&As for the period of 2003–2021 and an event study methodology, we document that acquirers with higher environmental innovation—innovative acquirers—earn average deal announcement abnormal returns that are 0.10–0.50 percentage points higher than those earned by their non‐innovative counterparts. These results are consistent across three important forms of environmental innovation (i.e., product, process, and organizational innovation) and are partly explained by the transfer of environmental innovation from the acquirer to the target. We further find that environmentally innovative acquirers are more likely to engage in majority control and cross‐border acquisitions, thus emphasizing the transfer effect. Overall, we contribute to RBV by providing evidence that environmental innovation is a distinctive resource or dynamic capability that is transferable from bidders to targets in the takeover market.

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Metrics

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Citations

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References

Details

Published: Jun 07, 2024
Vol/Issue: 33(7)
Pages: 6586-6615
License: View

Authors

T

Tanveer Hussain

University of Essex, Southend campus Southend‐On‐Sea UK

A

Abongeh A. Tunyi

Accounting & Finance, School of Management Swansea University, Bay Campus Swansea UK

G

Geofry Areneke

College of Business Administration, Ajman University, University Street, Ajman Business School Manchester Metropolitan University Manchester UK

Cite This Article

Tanveer Hussain, Abongeh A. Tunyi, Geofry Areneke (2024). Environmental innovation and takeover performance. Business Strategy and the Environment, 33(7), 6586-6615. https://doi.org/10.1002/bse.3822

Environmental innovation and takeover performance

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