Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India
Climate change, global warming, and carbon emission are global issues. Countries are strengthening their environmental regulations to mitigate the emission problem. According to the pollution haven hypothesis, rich countries invest in emerging economies where the institutional framework is weak to m...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-11-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/10/4/106 |
| _version_ | 1797979118613037056 |
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| author | Chandrika Raghavendra Mahesh Rampilla Venkata Ramana Thanikella Isha Gupta |
| author_facet | Chandrika Raghavendra Mahesh Rampilla Venkata Ramana Thanikella Isha Gupta |
| author_sort | Chandrika Raghavendra |
| collection | DOAJ |
| description | Climate change, global warming, and carbon emission are global issues. Countries are strengthening their environmental regulations to mitigate the emission problem. According to the pollution haven hypothesis, rich countries invest in emerging economies where the institutional framework is weak to migrate the emissions. With this background, this study examines the impact of the introduction of the carbon tax in India and environmental regulation restriction distance on India’s inbound cross-border mergers and acquisitions (a form of foreign direct investment) volume using a 979 country-pair-year observation sample. The Tobit regression model findings suggest that carbon tax introduction and environmental regulation distance negatively impact India’s inbound cross-border mergers and acquisitions volume. Furthermore, control of corruption intensifies its impact by effectively moderating them. The results indicate that India can avoid becoming a pollution haven by strengthening its environmental policies and controlling corruption. These results provide insight into strengthening the policies relating to environmental regulations and continuing the efforts required to control corruption in India. |
| first_indexed | 2024-04-11T05:33:59Z |
| format | Article |
| id | doaj.art-a39d3c58b9d34c548d298385adcd5f61 |
| institution | Directory Open Access Journal |
| issn | 2227-7072 |
| language | English |
| last_indexed | 2024-04-11T05:33:59Z |
| publishDate | 2022-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj.art-a39d3c58b9d34c548d298385adcd5f612022-12-22T15:47:19ZengMDPI AGInternational Journal of Financial Studies2227-70722022-11-011010610610.3390/ijfs10040106Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from IndiaChandrika Raghavendra0Mahesh Rampilla1Venkata Ramana Thanikella2Isha Gupta3Department of Management and Commerce, Amrita School of Arts and Sciences, Mysuru Campus, Amrita Vishwa Vidyapeetham, Bhogadi 570026, Karnataka, IndiaDepartment of Management and Commerce, Amrita School of Arts and Sciences, Mysuru Campus, Amrita Vishwa Vidyapeetham, Bhogadi 570026, Karnataka, IndiaBirla Institute of Management Technology, Greater Noida 201306, Uttar Pradesh, IndiaAmity University, Noida 201303, Uttar Pradesh, IndiaClimate change, global warming, and carbon emission are global issues. Countries are strengthening their environmental regulations to mitigate the emission problem. According to the pollution haven hypothesis, rich countries invest in emerging economies where the institutional framework is weak to migrate the emissions. With this background, this study examines the impact of the introduction of the carbon tax in India and environmental regulation restriction distance on India’s inbound cross-border mergers and acquisitions (a form of foreign direct investment) volume using a 979 country-pair-year observation sample. The Tobit regression model findings suggest that carbon tax introduction and environmental regulation distance negatively impact India’s inbound cross-border mergers and acquisitions volume. Furthermore, control of corruption intensifies its impact by effectively moderating them. The results indicate that India can avoid becoming a pollution haven by strengthening its environmental policies and controlling corruption. These results provide insight into strengthening the policies relating to environmental regulations and continuing the efforts required to control corruption in India.https://www.mdpi.com/2227-7072/10/4/106cross-border mergers and acquisitionscarbon taxenvironmental regulationcontrol of corruptionIndia |
| spellingShingle | Chandrika Raghavendra Mahesh Rampilla Venkata Ramana Thanikella Isha Gupta Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India International Journal of Financial Studies cross-border mergers and acquisitions carbon tax environmental regulation control of corruption India |
| title | Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India |
| title_full | Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India |
| title_fullStr | Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India |
| title_full_unstemmed | Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India |
| title_short | Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India |
| title_sort | impact of carbon tax and environmental regulation on inbound cross border mergers and acquisitions volume an evidence from india |
| topic | cross-border mergers and acquisitions carbon tax environmental regulation control of corruption India |
| url | https://www.mdpi.com/2227-7072/10/4/106 |
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