Effects of Acquisitions on Financial and Esg Performance: Analysis of Siemens Mobility’s Financial and Sustainability Reports

Abstract

A large number of studies have investigated the effects of acquisitions on the financial performance of the companies involved. Financial reporting plays a crucial role in understanding the effects of acquisitions on financial performance. An important aspect of financial reporting in acquisition processes is audit procedures that are carried out to confirm the reliability and truthfulness of financial reports. While research on the effects of acquisitions on financial performance is dominant in the academic literature, very little research has analysed the impact of acquisitions on companies' sustainability and ESG performance. Sustainable business practices are becoming increasingly important in today's corporate world. Companies realize that ESG (environment, social and governance) factors can have a significant impact on their long-term success and profitability. ESG factors are important in acquisition processes as companies face increasing scrutiny and pressure for transparency regarding environmental risk, social justice and corporate governance. The aim of the research in the paper is to look at the effects of acquisitions on the financial and ESG performance of companies. The research was conducted on the example of Siemens Mobility, which was created by the acquisition of the Serbian company Milanovi? Inženjering by the German company Siemens. Financial statements of the company in the years before and after the acquisition, reports on the sustainability of the company, as well as other relevant documents were analysed. The special contribution of the work is reflected in the comprehensive overview of the effects of acquisitions on ESG performance of companies.