Analyzing the role of mergers and acquisitions and environmental investment in achieving energy transition and sustainability

• Published in: Economic change and restructuring Vol. 57; no. 3; p. 131
• Main Authors: Li, Yibing, Geng, Xuejiao
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.06.2024; Springer Nature B.V
• Subjects: Acquisitions & mergers; Development Economics; Economic development; Economic Growth; Economic Policy; Economics; Economics and Finance; Energy; Energy industry; Energy transition; Environmental impact; Environmental performance; Environmental protection; International Economics; Investments; Macroeconomics/Monetary Economics//Financial Economics; Political Economy/Economic Systems; Sustainability; Sustainable development; China; M&A; Sustainable development; Environmental investment
• ISSN: 1573-9414; 1574-0277
• DOI: 10.1007/s10644-024-09691-0

With the exacerbation of environmental problems across the globe, corporate environmental performance draws increasing attention from investors. The important role that mergers and acquisitions (M&A) plays in corporate environmental protection has been reported; however, how the M&A activity in the energy industry affects corporate environmental protection investment (EPI), and what are the contributing factors to this effect remain to be explored. In this study, with Chinese listed energy enterprises as research samples, the impact of M&A activity on corporate EPI is examined and the mediator variable is identified; meanwhile, the contributing factors to this impact are explored. The results show that M&A activity in the energy industry will boost corporate EPI, with the effect more pronounced in the traditional energy industry than in the new counterpart; M&A activity will promote environmental investment by increasing M&A frequency; and the impact is more prominent in enterprises in under-marketized regions or subject to higher financing constraints. Policy recommendations are proposed per the research findings in hopes that the research could help enterprises reach sustainable economic development.