Abstract

ABSTRACT Locations that offer a positive business climate with strong environmental performance and sustainable practices are more likely to attract companies seeking to integrate carbon dioxide reduction strategies through mergers and acquisitions (M&A). The aim of this study is to analyze the extent to which the business climate in European countries influences the M&A market. We considered the conditions of institutional, economic or sustainability regulations to determine if the ease of doing business (EDB) index, the World Governance Indicators, and carbon dioxide emissions can influence the evolution of M&A. After applying the Ordinary Least Squares regression and panel analysis, the conclusion was that sustainability criteria are important factors for investors when choosing the companies to invest in.

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