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The Impact of Acquisition Intensity on ESG Performance

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Business Strategy and the Environment

Published online on

Abstract

["Business Strategy and the Environment, Volume 35, Issue 4, Page 4861-4875, May 2026. ", "\nABSTRACT\nThis study investigates the impact of Acquisition Intensity on ESG performance using a panel of 1,736 US‐listed companies from 2002 to 2023. Employing a robust OLS framework, we assess both Value‐Based and Volume‐Based Acquisition Intensity against overall ESG scores and their environmental, social, and governance pillars, controlling for firm size, leverage, and capital expenditure. The findings reveal a statistically significant negative relationship between Acquisition Intensity and ESG scores, particularly within the governance pillar. Larger firms tend to achieve higher ESG scores overall, though they underperform on environmental metrics. These results highlight a critical trade‐off between aggressive growth strategies and sustainability, offering timely insights for managers, investors, and regulators navigating ESG priorities in M&A decisions.\n"]