 Corporate carbon risk and green M&AsDuan Liu, Yuxuan Xiong, Lili Wang and Shujie Yao Research in International Business and Finance, 2025, vol. 75, issue C Abstract: Green M&A is more conducive to the realization of national and global carbon goals than carbon-transfer M&A. In the context of emission reduction and economic development, studying the risk pressure brought about by carbon emission to drive green M&A is important. This study analyzes the effect of carbon risk on green M&As using data for China’s A-share listed firms in 2010–19. It verifies the promoting effect of carbon risk on green M&As from two underlying mechanisms. First, the risk of high carbon emission increases pressure on corporate environmental legitimacy. Second, carbon emission behavior poses a reputational risk to firms. Firms with high carbon risk conduct green M&As to meet legitimacy requirements and maintain a good reputation. Under these two mechanisms, stronger environmental regulations and better CSR performance can intensify the stimulating effect. Our study provides empirical evidence on reducing carbon risk from the perspective of firms’ holistic green transformation. Keywords: Carbon Risk; Green M&A; Corporate Social Responsibility; Environmental Regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531924005075 DOI: 10.1016/j.ribaf.2024.102714 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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