Abstract: Emerging market multinational firms (EMNEs) have increased their access into developed markets over the recent years through cross-border acquisitions. Since there is an increasing emphasis on stakeholder approach and sustainability in current business practices, we examine the changes in environmental, social and governance (ESG) measures of EMNEs after accessing developed markets. Our preliminary results suggest that EMNE acquirers substantially improve on environmental and social performance in two years after acquiring developed market targets. Furthermore, explore the sensitivity of the post-event performance to various sustainability aspects as well as target market characteristics and find that environmental but not social changes have value implications.
Bio: Kaustav Sen is a Professor of Accounting at Lubin School of Business, Pace University, New York. He has published in the areas of corporate governance, financial reporting and stock price anomalies. Current interests include examining sustainability issues around corporate finance decisions and the role of text analysis for financial forecasting. He serves on the Editorial Board of Journal of International Accounting, Auditing & Taxation and has been a consultant at Prudential, New York Life and GE Capital in equity investments and risk management. He has held visiting faculty positions at Indian Institute of Management Calcutta and Hong Kong Polytechnic University.
