Climate theory & managerial decisions on cross-border mergers

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.

Citation

Siganos, A. (2024). Climate theory & managerial decisions on cross-border mergers. British Accounting Review, 56(1), Article 101260. https://doi.org/10.1016/j.bar.2023.101260

• Journal Article Type: Article
• Acceptance Date: Aug 29, 2023
• Online Publication Date: Aug 30, 2023
• Publication Date: 2024-01
• Deposit Date: Aug 30, 2023
• Publicly Available Date: Aug 30, 2023
• Print ISSN: 0890-8389
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 56
• Issue: 1
• Article Number: 101260
• DOI: https://doi.org/10.1016/j.bar.2023.101260
• Keywords: Climate finance; International business; Temperature; Cross-border mergers
• Public URL: http://researchrepository.napier.ac.uk/Output/3180280