The association between ESG and Deal Premium

Nowadays several countries are more concerned about sustainability than in the past. This tendency is reflected into policies and international agreements that have greatly impacted society. Although these agreements and frameworks were established at state-level, investors, asset owners, asset managers and businesses are increasingly looking to align their portfolios and strategic decisions to these sustainability goals, also engaging in M&A transactions. The purpose of the thesis is to investigate how ESG ratings, considered as a proxy for sustainability, influence the deal premium paid in acquisitions.