ESG AND M&A PERFORMANCE: A SYSTEMATIC REVIEW AND BIBLIOMETRIC ANALYSIS

Abstract

This review study aims to explore Environmental, Social, and Governance (ESG) performance in mergers and acquisitions activity. We conduct both a systematic literature review, following the Preferred Reporting Items of Systematic Reviews and Meta Analyses (PRISMA 2020), and a bibliometric approach to analyze 18 published articles from the latest 6 years, from 2020 to 2025. This review highlights the increasing significance of ESG in shaping M&A outcomes. Firms with strong ESG practices are more likely to create long-term value, enhance market efficiency, and mitigate post-transaction risks. Bibliometric evidence indicates a significant increase in academic attention since 2021, with a particular focus on China and cross-border transactions. Notably, ESG alignment in cross-border M&A facilitates smoother transactions and supports sustainability objectives, though it may also introduce valuation challenges and delays. Overall, ESG has shifted from a peripheral concern to a central determinant of both scholarly inquiry and business practice. This review provides current insights and identified research gaps in emerging markets and industry-specific contexts that are needed for future research.