Vol 17, No 4 (2023)

Innovation efforts and R&D play a foundational role for companies seeking to further develop their products and services and secure a sufficient market share. This is especially relevant for knowledge-intensive fields, particularly for the Innovation and Technology Sector, where players are constantly challenged with adapting to its multi-faceted nature, processing large amounts of data, and rapid innovation transfer. Thus, it is important to study the factors that contribute to R&D intensity and encourage innovations in detail. The study explores the impact of M&A activity on R&D intensity and R&D spending increase of both the acquiring companies and their targets in European Union. The final sample consists of 85 companies that had implemented M&A deals in the Innovation and Technology sector of the EU between 2007 and 2021, acting as acquirers or targets in these deals. The data is collected from Refinitiv Eikon database. Subgroups are determined based on categorization established by the European Commission. These include Business support service activities, Computer programming, Data processing, Manufacturing, and Telecommunications. In addition, financial data was collected on non-merging companies for forming a control group for the analysis. Difference-in-difference and probit model estimation methods are used to analyze the effect of M&A activity on the companies involved. The results show that the R&D intensity of both acquirers and targets decreases in the post-merger period. As for R&D expenditures, they increase for acquiring companies, while the effect is the opposite for their targets. The study contributes to the literature as it, unlike other similar studies that focus mostly on one group of actors, differentiates between the effect on the innovation activity of targets and the effect on the acquirers. The results could be used to increase the knowledge of the M&A effect on innovation efforts in the Innovation and Technology sector in European countries and understanding the possible problems it could lead to.

The paper provides a comprehensive investigation of M&A deals on the Russian market, particularly in the Oil and Gas and Power sectors. This research fills the gap in literature by scrutinizing key M&A trends, reviewing M&A activities, and evaluating M&A performance through a combined application of Data Envelopment Analysis (DEA) and case study analysis. A critical part of this study involves exploring the influence of geopolitical factors on these transactions. The article presents a novel academic contribution by offering focused insights on M&A activities in two under-researched yet critical sectors of the Russian economy. Furthermore, the innovative use of DEA and case study analysis enhances our understanding of industry trends over a span of 22 years, including the M&A transactions of 2022. Our sample includes 23 deals made by 17 Russian companies in the Energy and Power industries. We selected deals as a result of which the acquirer companies obtained more than 50% of the target company, so the acquirer company gained control over the operations and performance of the acquired company. The study traces the effects of geopolitical influences on M&A outcomes, a critical consideration given Russia’s unique geopolitical context. This research is of practical significance for domestic and international businesses contemplating M&A decisions within Russia’s Oil & Gas and Power industries, offering valuable insights to guide future strategies. While this study uncovers promising positive trends, further exploration and long-term data are necessary for a complete assessment of the impact of these M&A activities on company performance.

The article examines inclusive growth practices used in metallurgical companies and assesses their impact on financial results and value. An analysis of data from 102 of the largest companies in the metals industry between 2016 and 2021 showed that reducing greenhouse gas emissions, improving air quality, proper waste disposal, building an inclusive supply chain, respecting human rights and building community relations in the places where the company operates have a positive impact on its financial results and value. The results of the study can be used by top managers of metallurgical companies to formulate an inclusive growth strategy that meets the interests of all stakeholders, which will improve financial results and contribute to the growth of company value.

The paper is dedicated to the dividend policy of Russian companies under the sanctions pressure applied by the USA and the EU, which especially intensified in 2022 as a result of the changed global geopolitical environment. Cancel culture was used against Russia, complicating the financial, investment and operating activity of domestic companies. In the paper we analyze a sample of 73 Russian listed companies from non-banking sectors and 317 observations for 2017–2022. We consider the impact of sanctions against companies, boards of directors and CEOs on the company dividend policy. We used a logistic regression as a model to determine the probability of influence of changes in the studied variables on the decision concerning dividend payment. The sample is divided into two parts: 2017–2020 and 2021, and it illustrates companies’ behavior when the political environment in the world was stable and when the situation was aggravated. The research showed that sanctions against boards of directors and direct limitations of company’s operations had a negative influence on the probability of dividend payments while sanctions against CEO in the period of aggravation of political risks produced a positive effect. The cancel culture effect, i.e., the refusal of the USA and EU to cooperate with Russia and sanctions imposed on it, produced a significant negative effect on dividend payout by Russian companies.

The paper provides a scholarly examination of academic studies of the ESG landscape in China through a systematic literature review with a major focus on the nature and intensity of regulatory guidelines and policies. While many studies indicate positive effects of Chinese ESG policies on corporate ESG performance and investment, they primarily focus on environmental aspects. This analysis of China’s ESG rating system exposes relationships between ESG ratings, corporate performance, financing costs, including both debt and equity financing. The research on equity financing costs is inconsistent and limited in scope, indicating the need for additional investigation. Of the factors influencing ESG, the past year has seen a surge in research on the topic of digital transformation and ESG performance. Most studies demonstrate that digital transformation contributes to ESG performance, and a few suggest that digital transformation positively moderates the effect of ESG performance on firm value enhancement. This review discusses the growth of ESG investment in China, focusing on pension funds, commercial banks, and ESG funds, as well as investor preferences. Despite the growing role of ESG in investment decisions, extant research is largely theoretical, underscoring the need for more empirical and quantitative studies. The research identifies gaps in studies devoted to ESG investment, including the need for comprehensive studies on the impact of ESG across various insurance types and industries, and the development of effective ESG quality assessment methods. This review is among the first academic resources summarizing and integrating various studies, and highlighting areas for future ESG research in China.