Socio-environmental drivers of business combinations
a comparative study of evidence from polluting companies listed on the stock markets of Brazil and China
DOI:
https://doi.org/10.16930/2237-766220253613Keywords:
Socio-environmental motivators, Business combinations, Stock marketAbstract
The aim of this investigation was to compare evidence on the disclosure of socio-environmental drivers of business combinations among publicly traded Brazilian companies with polluting potential to findings from studies on the disclosure of socio-environmental drivers by publicly listed Chinese companies operating in polluting sectors. For this purpose, a qualitative approach based on documentary content analysis of corporate disclosures was employed. The study examined 100 business combinations over a ten-year period (2010–2019), involving 150 companies—50 acquirers and 100 targets. It analyzed 15 industrial sectors in Brazil with polluting potential, as defined by Law No. 10.165 (2000). The findings indicate that Chinese publicly traded companies with polluting characteristics demonstrated a higher level of disclosure regarding socio-environmental practices in their business combinations compared to Brazilian companies. Additional results suggest that business combinations driven by socio-environmental motives among Chinese companies were more likely to occur in contexts involving highly polluting factors and products than those undertaken by Brazilian firms. Brazil is gradually moving toward the adoption of practices and discussions surrounding socio-environmentally motivated business combinations in publicly traded companies operating in potentially polluting sectors. However, China shows a more advanced integration of socio-environmental motives into the business combination strategies of its publicly listed polluting-sector companies. The primary contribution of this research lies in its discussion of how socio-environmental (sustainable) business combinations can play a fundamental role in minimizing environmental degradation and conserving planetary resources, while potentially raising corporate awareness of social responsibility. The study offers a comparative perspective on the contexts of Brazil and China. Furthermore, it fosters contemporary reflections on the disclosure of financial, accounting, environmental, and social information, highlighting the interaction between Social and Environmental Accounting and Financial Accounting for external users in both countries.
References
Barros, V., Matos, P. V., Sarmento, J. M., & Vieira, P. R. (2022). M&A activity as a driver for better ESG performance. Technological Forecasting and Social Change, 175, 121338. https://doi.org/10.1016/j.techfore.2021.121338
Beuren, I. M., de Moura, G. D., & Theis, V. (2016). Remuneração dos executivos em empresas que realizaram combinação de negócios. Revista de Administração da UNIMEP, 14(2), 1–30. http://www.redalyc.org/articulo.oa?id=273746863001
Brasil Ecodiesel Indústria e Comércio de Biocombustíveis e Óleos Vegetais S.A. (2010). Demonstrações Financeiras Padronizadas de 31 de dezembro de 2010. https://www.rad.cvm.gov.br/ENET/frmGerenciaPaginaFRE.aspx?NumeroSequencialDocumento=9555&CodigoTipoInstituicao=1
Brazil Pharma S.A. (2012). Protocolo de Incorporação e Instrumento de Justificação de Incorporação de Ações de Emissão da Drogaria Guararapes Brasil S.A. pela Brazil Pharma S.A. https://www.rad.cvm.gov.br/ENET/frmExibirArquivoIPEExterno.aspx?NumeroProtocoloEntrega=324418
Chen, X., Liu, H., & Du, W. (2025). Does managerial myopia affect firms’ green merger and acquisition? Evidence from Chinese firms in high-polluting industries. Transnational Corporations Review, 17(1), 200115. https://doi.org/10.1016/j.tncr.2025.200115
Christofi, M., Vrontis, D., Thrassou, A., & Shams, S. R. (2019). Triggering technological innovation through cross-border mergers and acquisitions: a micro-foundational perspective. Technological Forecasting and Social Change, 146, 148–166. https://doi.org/10.1016/j.techfore.2019.05.026
Comitê Brasileiro de Pronunciamentos de Sustentabilidade. (2024). Pronunciamento Técnico CBPS 01, de 29 de outubro de 2024. Requisitos Gerais para Divulgação de Informações Financeiras Relacionadas à Sustentabilidade. https://www.facpcs.org.br/CBPS/Documentos-Emitidos/Pronunciamentos/Pronunciamento?Id=159
Comitê de Pronunciamentos Contábeis. (2011). Pronunciamento Técnico CPC 15, de 3 de junho de 2011. Combinação de Negócios. https://static.cpc.aatb.com.br/Documentos/235_CPC_15_R1_rev%2013.pdf
Comitê de Pronunciamentos Contábeis. (2012). Pronunciamento Técnico CPC 36, de 7 de dezembro de 2012. Demonstrações Consolidadas. https://static.cpc.aatb.com.br/Documentos/448_CPC_36_R3_rev%2008.pdf
Correa, J. C., Gonçalves, M. N., & Moraes, R. O. (2015). Disclosure ambiental das companhias do setor de petróleo, gás e biocombustíveis listadas na BM&FBovespa: uma análise à luz da Teoria da Legitimidade. Revista de Gestão Ambiental e Sustentabilidade, 4(3), 139–154.
Costa, F. M., & Amorim Júnior, R. L. (2020). Reorganizações Societárias e Agressividade Tributária. Revista Evidenciação Contábil & Finanças, 8(3). https://doi.org/10.22478/ufpb.2318-1001.2020v8n3.51368
D’Alauro, G. (2020). Italian Utilities and Public Control: Evidence of Merger Effects. International Journal of Public Administration, 43(7), 573–586. https://doi.org/10.1080/01900692.2019.1644517
Eletropaulo Metropolitana Eletricidade de São Paulo S.A. (2019). Demonstrações Financeiras Padronizadas de 30 de dezembro de 2019. https://www.rad.cvm.gov.br/ENET/frmGerenciaPaginaFRE.aspx?NumeroSequencialDocumento=91136&CodigoTipoInstituicao
Fasolin, L. B., Brizolla, M. M. B., da Silva, A., & Klann, R. C. (2020). Características de companhias: práticas de combinação de negócios. Revista de Contabilidade e Controladoria, 11(2).
Fikru, M. G., & Gautier, L. (2021). Electric utility mergers in the presence of distributed renewable energy. Energy Economics, 101, 105436. https://doi.org/10.1016/j.eneco.2021.105436
Gray, R. (1992). Accounting and environmentalism: an exploration of the challenge of gently accounting for accountability, transparency and sustainability. Accounting, Organizations and Society, 17(5), 399–425. https://doi.org/10.1016/0361-3682(92)90038-T
Gray, R. (1994). Corporate reporting for sustainable development: accounting for sustainability in 2000AD. Environmental values, 3(1), 17–45. https://doi.org/10.3197/096327194776679782
Gray, R. (2001). Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt? Business ethics: A European review, 10(1), 9–15. https://doi.org/10.1111/1467-8608.00207
Gray, R., Javad, M., Power, D. M., & Sinclair, C. D. (2001). Social and environmental disclosure and corporate characteristics: A research note and extension. Journal of Business Finance & Accounting, 28(3–4), 327–356. https://doi.org/10.1111/1468-5957.00376
Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47–77. https://doi.org/10.1108/09513579510146996
He, S., Wei, Y., & Li, W. (2024). Research on the impact of green mergers and acquisitions of heavily polluting enterprises on the quality of environmental information disclosure: empirical evidence from listed companies in China. Environment, Development and Sustainability, 1–32. https://doi.org/10.1007/s10668-024-04525-5
Helfaya, A., & Moussa, T. (2017). Do board's corporate social responsibility strategy and orientation influence environmental sustainability disclosure? UK evidence. Business Strategy and the Environment, 26(8), 1061–1077. https://doi.org/10.1002/bse.1960
Hossain, M. S. (2021). Merger & Acquisitions (M&As) as an important strategic vehicle in business: Thematic areas, research avenues & possible suggestions. Journal of Economics and Business, 106004. https://doi.org/10.1016/j.jeconbus.2021.106004
Hu, J., Fang, Q., & Wu, H. (2023). Environmental tax and highly polluting firms' green transformation: evidence from green mergers and acquisitions. Energy Economics, 127, 107046. https://doi.org/10.1016/j.eneco.2023.107046
Hu, M., & Huang, M. (2025). How do green acquisitions facilitate enterprise carbon emission reductions? Finance Research Letters, 79, 1–7. https://doi.org/10.1016/j.frl.2025.107306
Islam, M. A. (2017). Disclosures of social value creation and managing legitimacy: a case study of three global social enterprises. Australian Accounting Review, 27(3), 297–314. https://doi.org/10.1111/auar.12130
Janowicz, M. (2022). To disclose or not to disclose? To what extent information about business combinations matters on example of Polish companies. Procedia Computer Science, 207, 1891–1900. https://doi.org/10.1016/j.procs.2022.09.247
João Fortes Engenharia S.A (2012). Protocolo e Justificação de Incorporação de Ações de Emissão da Incorporadora Pinheiro Pereira S.A. pela João Fortes Engenharia S.A. https://www.rad.cvm.gov.br/ENET/frmExibirArquivoIPEExterno.aspx?NumeroProtocoloEntrega=338108
Lei n.º 10.165 (2000). Altera a Lei no 6.938, de 31 de agosto de 1981, que dispõe sobre a Política Nacional do Meio Ambiente, seus fins e mecanismos de formulação e aplicação, e dá outras providências. https://www.planalto.gov.br/ccivil_03/leis/l10165.htm
Liu, Y., & Wang, Y. (2025). Does the failure of corporate mergers and acquisitions affect innovation efficiency. International Review of Financial Analysis, 97, 103821. https://doi.org/10.1016/j.irfa.2024.103821.
Liu, D., Xiong, Y., Wang, L., & Yao, S. (2025). Corporate carbon risk and green M&As. Research in International Business and Finance, 75, 102714. https://doi.org/10.1016/j.ribaf.2024.102714
Lu, J. (2021). Can the green merger and acquisition strategy improve the environmental protection investment of listed company? Environmental Impact Assessment Review, 86, 106470. https://doi.org/10.1016/j.eiar.2020.106470
Lu, J. (2022). Green merger and acquisition and export expansion: Evidence from China's polluting enterprises. Sustainable production and consumption, 30, 204–217. https://doi.org/10.1016/j.spc.2021.11.024
Marconi, M. A., & Lakatos, E. M. (2019). Metodologia Científica (7ª ed.). Atlas.
Minutolo, M. C., Kristjanpoller, W. D., & Stakeley, J. (2019). Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance. Business Strategy and the Environment, 28(6), 1083–1095. https://doi.org/10.1002/bse.2303
Monteiro, S. M. S., & Aibar‐Guzmán, B. (2010). Determinants of environmental disclosure in the annual reports of large companies operating in Portugal. Corporate Social Responsibility and Environmental Management, 17(4), 185-204. https://doi.org/10.1002/csr.197
Nascimento, F. P., & Sousa, F. L. L. (2015). Metodologia da pesquisa científica. Thesaurus.
Patten, D. M. (1991). Exposure, legitimacy, and social disclosure. Journal of Accounting and Public Policy, 10(4), 297–308. https://doi.org/10.1016/0278-4254(91)90003-3
Rover, S., Murcia, F. D. R., & de Souza Murcia, F. C. (2015). The determinants of social and environmental disclosure practices: The Brazilian case. Environmental Quality Management, 25(1), 5–24. https://doi.org/10.1002/tqem.21406
Shen, H., Liang, Y., Li, H., Liu, J., & Lu, G. (2021). Does geopolitical risk promote mergers and acquisitions of listed companies in energy and electric power industries. Energy Economics, 95, 105115. https://doi.org/10.1016/j.eneco.2021.105115
Somaiya, J., & Savani, R. (2019). Merger And Acquisition on Electricity Industry Outside India. Gap Interdisciplinarities, 2(4),46–52. https://www.researchgate.net/profile/jayesh-somaiya/publication/364346488mergerandacquisitiononelectricityindustryoutside_india/links/634d5ed46e0d367d91a5d223/merger-and-acquisition-on-electricity-industry-outside-india.pdf
Souza, M. M. D., & Borba, J. A. (2016). Value relevance do nível de disclosure das combinações de negócios e do goodwill reconhecido nas companhias de capital aberto brasileiras. Revista Contabilidade & Finanças, 28, 77–92. https://doi.org/10.1590/1808-057x201703240
Souza, M. M., Rover, S., & Borba, J. A. (2016). Determinantes do nível de disclosure das combinações de negócios realizadas pelas empresas brasileiras de capital aberto. Race: Revista de Administração, Contabilidade e Economia, 15(3), 945–968. https://doi.org/10.18593/race.v15i3.7429
Sun, Z., Sun, X., Wang, W., & Wang, W. (2023). Source reduction strategy or end-of-pipe solution? The impact of green merger and acquisition on environmental investment strategy of Chinese heavily polluting enterprises. Journal of Cleaner Production, 413, 137530. https://doi.org/10.1016/j.jclepro.2023.137530
Wang, X., Qiu, J., Qiu, Z., & Bao, W. (2025). Regulatory inquiry letters and green M&As of heavily polluting firms. Finance Research Letters, 78, 107183. https://doi.org/10.1016/j.frl.2025.107183
Xie, E., Reddy, K. S., & Liang, J. (2017). Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions. Journal of World Business, 52(2), 127–183. https://doi.org/10.1016/j.jwb.2016.12.005
Xu, Y., Wang, W., Gao, H., & Zhu, H. (2024). The Impact of Green Mergers and Acquisitions on Corporate Environmental Performance: Evidence from China’s Heavy-Polluting Industries. Sustainability, 16(9), 3796. https://doi.org/10.3390/su16093796
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Revista Catarinense da Ciência Contábil
This work is licensed under a Creative Commons Attribution 4.0 International License.
The copyright for articles published in this journal belongs to the author (s), with first publication rights assigned to Revista Catarinense da Ciência Contábil. Due to appearing in this publicly accessible journal, articles are free to use, with mandatory recognition of the original authorship and initial publication in this magazine and for educational and non-commercial applications. The magazine chose to use published works for non-commercial purposes, including the right to submit or work for publicly accessible databases. The content of published articles is the sole and exclusive responsibility of the authors. - The author (s) authorize (s) a publication of the article in the journal; - The author (s) guarantee (s) that a contribution is original and unpublished and that it is not being evaluated in another magazine (s); - A magazine is not responsible for the opinions, ideas and concepts emitted in the texts, for the full responsibility of the author (s); - It is reserved to the editors or the right to make textual adjustments and to adjust the article to the publication rules.
This work is licensed under a Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional.
