Mergers & Acquisitions as a greenwashing strategy: Do acquiring firms improve ESG scores without real change?
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2025-07-04
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en
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This thesis investigates whether mergers and acquisitions (M&A) serve as a mechanism for acquiring firms to enhance their environmental, social, and governance (ESG) performance, and whether such improvements reflect genuine change or symbolic greenwashing. Drawing on stakeholder and signaling theory, the study examines 260 M&A deals between 2002 and 2021, focusing on transactions where the target’s ESG score exceeds that of the acquirer. A difference-in-differences (DiD) approach is applied to assess post-merger ESG score changes relative to non-acquiring firms, with additional analysis exploring the role of target ESG characteristics. The results provide modest evidence that M&A activity is associated with improved ESG ratings for acquirers. However, these improvements are not systematically explained by the ESG profile or pre-merger ESG advantage of the target firm. The findings suggest that post-merger ESG gains may reflect managerial signaling or reputational effects rather than substantive integration of sustainability practices, aligning with concerns about greenwashing. This research contributes to the emerging literature on ESG in M&A by highlighting the need for critical scrutiny of post-acquisition ESG developments and emphasizing that meaningful sustainability progress requires more than strategic deal-making.
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Faculteit der Managementwetenschappen