Abstract
We build upon existing theories of merger and acquisition (M&A) to examine the differences in environmental performance between targets and acquirers in the Food and Beverage processing (F&B) industry. In a cream-skimming strategy, acquiring a firm with better environmental performance may add to the acquirer’s existing green efforts and improve their environmental capabilities. In a turnaround strategy, an acquirer may buy businesses from a dirtier firm and later bring them up to the buyer’s environmental standard. Among a set of 13 M&A deals in the F&B industry, we identify deals where targets have poorer or better environmental performance (toxic chemical management) than their acquirers. Our finding suggests that, among the given set of firms, there is some evidence of improvements in the toxic chemical management rate of targets and acquirers.
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Articles in the same Issue
- Invited papers
- The Economic Effects of COVID-19 on the Producers of Ethanol, Corn, Gasoline, and Oil
- COVID-19 and the US Lettuce Supply Chain: Implications for Farmworker Health and Safety and a Secure Supply
- Research Articles
- The GMO Pipeline, Import Bans and Asynchronous Approvals – The Impact on Agricultural Trade
- The Competitive Impact of Cooperatives on the Spot Market: A Spatial Analysis of Iowa Corn Prices
- The Determinants of the EU Import Demand for Soybean and Maize: What Role for GMOs?
- Environmental Performance of Food and Beverage Firms in Merger and Acquisition Deals
- Regular Price Stickiness in German Food Retailing
- The Influence of Online Reviews on Restaurants: The Roles of Review Valence, Platform, and Credibility
- Collective Reputation and Quality in Online Platforms
- What Factors Influence Consumer Preferences for Search and Credence Seafood Characteristics? an Empirical Analysis in Kentucky and South Carolina
- Review
- Hedonic Price Functions and Wine Price Determinants: A Review of Empirical Research