In this study, we examine whether carbon risk matters in acquisitions. Using a firm's carbon emissions to proxy for carbon risk, we examine whether an acquirer's level of carbon emissions is related to the decision to engage in acquisitions and achieve subsequent acquisition returns. The results show that firms with higher emissions have an increased likelihood of acquiring foreign targets while, at the same time, having a decreased likelihood of acquiring domestic targets. Acquirers with large carbon footprints seek out targets in foreign countries that have low gross domestic product (GDP) or weak environmental, regulatory, or governance standards. We also examine the relationship between carbon emissions and announcement returns. We find that cross-border acquisition announcement returns are higher when acquirers with high carbon emissions acquire targets in countries with fewer regulations or weaker environmental standards. Focusing on the interplay of corporate social responsibility (CSR) and carbon emissions, we find that investors censure acquirers that promote CSR while also having high carbon emissions, thus resulting in worse abnormal returns. This is particularly the case if the target country is wealthy or has stronger country governance or strong environmental protection. Our findings add insight on the channels through which a focus on reducing carbon risk can add value for shareholders.

在本研究中，我们研究了碳风险在收购中是否重要。使用公司的碳排放量为了代表碳风险，我们考察了收购方的碳排放水平是否与进行收购并获得后续收购回报的决定有关。结果表明，排放量较高的公司获得外国目标的可能性增加，同时获得国内目标的可能性降低。拥有大量碳足迹的收购方会在国内生产总值 (GDP) 低或环境、监管或治理标准薄弱的外国寻找目标。我们还研究了碳排放和公告回报之间的关系。我们发现，当高碳排放的收购方在监管较少或环境标准较弱的国家收购目标时，跨境收购公告回报更高。关注企业社会责任（CSR）与碳排放的相互作用，我们发现投资者谴责既促进企业社会责任又具有高碳排放的收购方，从而导致更差的异常回报。如果目标国家富裕或拥有更强大的国家治理或强大的环境保护，情况尤其如此。我们的发现增加了对减少碳风险可以为股东增加价值的渠道的洞察。