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Climate theory & managerial decisions on cross-border mergers

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  • Siganos, Antonios

Abstract

We explore the significance of climate theory concerning managerial decisions in cross-border mergers. We report that temperature offers a good familiarity proxy showing that country pairs that experience little (large) distance in temperature experience relatively more (less) acquisitions. A one-unit decrease in the difference of the temperature in a country pair is linked with an increase in the number of cross-border mergers by 1.09%. We then highlight the significance of relatively warm temperatures on managerial decisions: We find that (i) the relationship is driven by the Summer months; during June–August for country pairs in the Northern hemisphere and December–February for pairs in the Southern hemisphere, (ii) relatively more cross-border mergers occur towards countries with modestly warmer temperatures showing evidence of managerial affinity towards warmer places, and (iii) country pairs with relatively high temperatures exhibit more acquisitions. Overall, this study highlights a new perspective in the field of climate finance.

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  • Siganos, Antonios, 2024. "Climate theory & managerial decisions on cross-border mergers," The British Accounting Review, Elsevier, vol. 56(1).
    • Handle: RePEc:eee:bracre:v:56:y:2024:i:1:s0890838923001142
    DOI: 10.1016/j.bar.2023.101260
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    More about this item

    Keywords

    Climate finance; International business; Temperature; Cross-border mergers;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Z1 - Other Special Topics - - Cultural Economics

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