Does corporate governance affect M&As’ impact on social and environmental performance? Evidence from Milan Stock Exchange’s listed firms
Keywords:
Corporate governance, M&As, social and environmental performance, stakeholder-agency theory
Abstract
This study’s aim is twofold: (1) to explore the effect of mergers and acquisitions (M&As) on bidders’ social and environmental performance, and 2) to determine the potential drivers of this process by focusing on corporate governance characteristics.The analysis is based on M&As performed by firms listed on the Milan Italian Stock Exchange during the 5-year period of 2018–2022. The research data were retrieved from the FactSet and Refinitiv Eikon databases and examined using regression analyses. The findings demonstrate that M&As positively affect social and environmental performance, as long as good corporate governance practices are in place. The current research draws on stakeholder-agency theory and identifies the potential drivers of the value creation process in the M&A context enhancing the limited existing literature on this topic. The findings highlight the role of corporate governance in strengthening the impact of M&As on bidders’ non-financial performance, offering valuable practical implications. First, investors and financial analysts should develop a comprehensive perspective to assess the M&A’s impact on non-financial performance. Second, regulators should consider strengthening specific corporate governance requirements. Finally, policymakers should encourage M&As undertaken by firms with sustainability-oriented boards of directors.
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References
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Published
2025-04-30
How to Cite
Almici, A., Camodeca, R., & Bosetti, L. (2025). Does corporate governance affect M&As’ impact on social and environmental performance? Evidence from Milan Stock Exchange’s listed firms. European Scientific Journal, ESJ, 21(10), 1. https://doi.org/10.19044/esj.2025.v21n10p1
Section
ESJ Social Sciences
Copyright (c) 2025 Alex Almici, Renato Camodeca, Luisa Bosetti
This work is licensed under a Creative Commons Attribution 4.0 International License.
