Table A2 Variable definitions Variable...

Table A2

Variable definitions

Variable	Abbreviation	Definition
Deal size	DSIZE	Natural logarithm of total deal value in US dollars
Deal diversification	DDIV	1 if the 2-digit-SIC industries of the target and the acquirer are different, 0 otherwise
Cross-border deal	DCROSS	1 if the nations of the target and the acquirer are different, 0 otherwise
Multiple bidder deal	DMUL	1 if the deal involves more than one bidder, 0 otherwise
Cash-offer deal	DCASH	1 if the deal is 100% cash, 0 otherwise
Stock-offer deal	DSTOCK	1 if the deal is 100% stock, 0 otherwise
Acquirer's market capitalization	AMKCAP	Natural logarithm of an acquirer's total market capitalization at the end of the year prior to the deal announcement
Acquirer's extent of greenwashing pre-merger	AGWPRE	The inverse of the Refinitiv ESG controversies score at the end of the year prior to the deal announcement
Acquirer's change in the extent of greenwashing post-merger	AGWCHANGE	The percentage of change in an acquirer's inverse ESG controversies scores from one year before to one year after the deal announcement
Acquirer's cumulative abnormal return	ACAR	First, we employ two models to calculate the abnormal returnAR. Market-adjusted model: ${A R}_{i, t} = R_{i, t} - R_{m, t}$ ⁠. $R_{i, t}$ is the stock's daily return and $R_{m, t}$ is the country market index return. Market model: ${A R}_{i, t} = R_{i, t} - (α_{i} + β_{i} R_{m, t})$ ⁠. $α_{i}$ and $β_{i}$ are the estimated ordinary least squares (OLS) regression intercept and slope, respectively. Parameters are estimated over the period from day −250 to day −10, where day 0 is the deal announcement date. Second, the cumulative abnormal return (CAR) is calculated as follows: ${C A R}_{i} [m; n] = \sum_{t = m}^{n} {A R}_{i, t}$ [m;n] is the event period from m days before to n days after the announcement date. We examine 3-day and 5-day windows around the deal announcement date.
Acquirer's total assets	AASSETS	Natural logarithm of an acquirer's total assets at the end of the year prior to the deal announcement
Acquirer's market-to-book value	AMTB	A target's market-to-book value of equity at the end of the year prior to the deal announcement
Acquirer's leverage	ALEV	An acquirer's total debts-to-total assets ratio at the end of the year prior to the deal announcement
Acquirer's return-on-equity	AROE	An acquirer's net income divided by its total stockholders' equity at the end of the year prior to the deal announcement
Acquirer's Board size	ABSIZE	An acquirer's total Board members at the end of the year prior to the deal announcement
Acquirer's percentage of institutional ownership	AINST	An acquirer's the percentage of institutional ownership at the end of the year prior to the deal announcement
Acquirer's percentage of independent directors	AIDIR	An acquirer's the percentage of independent directors at the end of the year prior to the deal announcement
Target's ESG performance	TRESG	The ratio of a target's ESG Combined (ESGC) score to that of a corresponding acquirer at the end of the year prior to the deal announcement
Target's market capitalization	TMKCAP	Natural logarithm of a target's total market capitalization at the end of the year prior to the deal announcement
Target's total assets	TASSETS	Natural logarithm of a target's total assets at the end of the year prior to the deal announcement
Target's market-to-book value	TMTB	A target's market-to-book value of equity at the end of year prior to the deal announcement
Target's leverage	TLEV	A target's total debts-to-total assets ratio at the end of the year prior to the deal announcement
Target's return-on-equity	TROE	A target's net income divided by its total stockholders' equity at the end of the year prior to the deal announcement

Variable	Abbreviation	Definition
Deal size	DSIZE	Natural logarithm of total deal value in US dollars
Deal diversification	DDIV	1 if the 2-digit-SIC industries of the target and the acquirer are different, 0 otherwise
Cross-border deal	DCROSS	1 if the nations of the target and the acquirer are different, 0 otherwise
Multiple bidder deal	DMUL	1 if the deal involves more than one bidder, 0 otherwise
Cash-offer deal	DCASH	1 if the deal is 100% cash, 0 otherwise
Stock-offer deal	DSTOCK	1 if the deal is 100% stock, 0 otherwise
Acquirer's market capitalization	AMKCAP	Natural logarithm of an acquirer's total market capitalization at the end of the year prior to the deal announcement
Acquirer's extent of greenwashing pre-merger	AGWPRE	The inverse of the Refinitiv ESG controversies score at the end of the year prior to the deal announcement
Acquirer's change in the extent of greenwashing post-merger	AGWCHANGE	The percentage of change in an acquirer's inverse ESG controversies scores from one year before to one year after the deal announcement
Acquirer's cumulative abnormal return	ACAR	First, we employ two models to calculate the abnormal returnAR. Market-adjusted model: ${A R}_{i, t} = R_{i, t} - R_{m, t}$ . $R_{i, t}$ is the stock's daily return and $R_{m, t}$ is the country market index return. Market model: ${A R}_{i, t} = R_{i, t} - (α_{i} + β_{i} R_{m, t})$ . $α_{i}$ and $β_{i}$ are the estimated ordinary least squares (OLS) regression intercept and slope, respectively. Parameters are estimated over the period from day −250 to day −10, where day 0 is the deal announcement date. Second, the cumulative abnormal return (CAR) is calculated as follows: ${C A R}_{i} [m; n] = \sum_{t = m}^{n} {A R}_{i, t}$ [m;n] is the event period from m days before to n days after the announcement date. We examine 3-day and 5-day windows around the deal announcement date.
Acquirer's total assets	AASSETS	Natural logarithm of an acquirer's total assets at the end of the year prior to the deal announcement
Acquirer's market-to-book value	AMTB	A target's market-to-book value of equity at the end of the year prior to the deal announcement
Acquirer's leverage	ALEV	An acquirer's total debts-to-total assets ratio at the end of the year prior to the deal announcement
Acquirer's return-on-equity	AROE	An acquirer's net income divided by its total stockholders' equity at the end of the year prior to the deal announcement
Acquirer's Board size	ABSIZE	An acquirer's total Board members at the end of the year prior to the deal announcement
Acquirer's percentage of institutional ownership	AINST	An acquirer's the percentage of institutional ownership at the end of the year prior to the deal announcement
Acquirer's percentage of independent directors	AIDIR	An acquirer's the percentage of independent directors at the end of the year prior to the deal announcement
Target's ESG performance	TRESG	The ratio of a target's ESG Combined (ESGC) score to that of a corresponding acquirer at the end of the year prior to the deal announcement
Target's market capitalization	TMKCAP	Natural logarithm of a target's total market capitalization at the end of the year prior to the deal announcement
Target's total assets	TASSETS	Natural logarithm of a target's total assets at the end of the year prior to the deal announcement
Target's market-to-book value	TMTB	A target's market-to-book value of equity at the end of year prior to the deal announcement
Target's leverage	TLEV	A target's total debts-to-total assets ratio at the end of the year prior to the deal announcement
Target's return-on-equity	TROE	A target's net income divided by its total stockholders' equity at the end of the year prior to the deal announcement

Note(s): This table describes the abbreviation and calculation of each variable

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