RESEARCH ARTICLE
How does green finance policy affect firms' pro-environmental mergers and acquisitions?
Zhimin Yi,
Haiyue Liu,
Yile Wang,
Jinyong Chen,
Zhimin Yi
Department of Accounting and Finance, Business School, Sichuan University, Chengdu, Sichuan, China
Search for more papers by this authorHaiyue Liu
Department of Accounting and Finance, Business School, Sichuan University, Chengdu, Sichuan, China
Search for more papers by this authorYile Wang
Department of Accounting and Finance, Business School, Sichuan University, Chengdu, Sichuan, China
Search for more papers by this authorCorresponding Author
Jinyong Chen
Department of Accounting, Business School, Hubei University, Wuchang, Hubei, China
Correspondence
Jinyong Chen, Department of Accounting, Business School, Hubei University, Wuchang, Hubei 430062, China.
Email: [email protected]
Search for more papers by this authorZhimin Yi,
Haiyue Liu,
Yile Wang,
Jinyong Chen,
Zhimin Yi
Department of Accounting and Finance, Business School, Sichuan University, Chengdu, Sichuan, China
Search for more papers by this authorHaiyue Liu
Department of Accounting and Finance, Business School, Sichuan University, Chengdu, Sichuan, China
Search for more papers by this authorYile Wang
Department of Accounting and Finance, Business School, Sichuan University, Chengdu, Sichuan, China
Search for more papers by this authorCorresponding Author
Jinyong Chen
Department of Accounting, Business School, Hubei University, Wuchang, Hubei, China
Correspondence
Jinyong Chen, Department of Accounting, Business School, Hubei University, Wuchang, Hubei 430062, China.
Email: [email protected]
Search for more papers by this authorAbstract
The study reveals that the Green Credit Guidelines significantly encourage firms' pro-environmental mergers and acquisitions (M&As) among polluting industries, as evidenced by difference-in-differences estimations with Chinese listed firms (2004–2020). Three primary mechanisms include increased commercial credit financing, improvements within firm agencies, and heightened scrutiny from external analysts. The effect is more prominent in non-state-owned firms, firms with a higher number of executives with financial backgrounds, and regions with lower levels of green financial development and environmental regulations. Post-M&A, acquiring firms demonstrate a marked decrease in environmental governance expenses and carbon emissions, alongside an improvement in overall environmental performance.
Open Research
DATA AVAILABILITY STATEMENT
Data available on request from the authors.
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