Low-carbon mergers and acquisitions as a driver for higher energy efficiency: Evidence from China's high energy-consuming companies

Abstract

Under the target of carbon peaking and carbon neutrality, high-energy consuming enterprises face enormous pressure to reduce carbon emissions. In order to quickly obtain low-carbon resources, low-carbon mergers and acquisitions (LMA) have emerged. This study attempts to test the impact of LMA on energy efficiency (ENE) in listed high energy-consuming companies based on SYS-GMM and fixed effects models. Results are as follows: (1) Compared to firms without LMA, firms with LMA increase ENE by 1.7 %. (2) Cash-paid LMA, horizontal LMA, and local LMA are more likely to promote ENE. (3) LMA promotes ENE by increasing environmental responsibility, low-carbon technology innovation, environmental investment. However, LMA may inhibit ENE by increasing manager confidence, management costs, and performance pressure. (4) The higher the government regulation and media supervision, the higher the promoting effect of LMA on ENE. (5) In the firm heterogeneity, LMA has more promoting effect on ENE in state-owned enterprises and eastern enterprises. This study is beneficial for providing references for high energy-consuming companies to promote LMA.