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The short and long-term effects of cross-border M&A network on Chinese enterprises’ green innovation

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  • Ding, Yibing
  • Li, Jing
  • Tian, Yuqi

Abstract

How does cross-border mergers and acquisitions (M&A) network affect green innovation? To achieve pollution management and circular economy development, green innovation is the key path. However, little literature investigated the influence of cross-border M&A on green innovation from a network perspective. Using Chinese listed companies and an original database sourced from Zephyr of cross-border M&A deals from 2009 to 2019, this paper examines the short and long-term impact of the network on green innovation of Chinese corporations. It is suggested that the network plays a positive role in green innovation, which is not pronounced in the short term, but obvious in the long run. We further demonstrate that the long-term facilitating role is more evident for large enterprises, heavily polluting enterprises, non-high-tech enterprises, enterprises with deep knowledge base, and enterprises without myopic managers. Moreover, the long-term positive impact of cross-border M&A network on green innovation is augmented by corporate environmental responsibility and mitigated by government environmental protection subsidies.

Suggested Citation

  • Ding, Yibing & Li, Jing & Tian, Yuqi, 2024. "The short and long-term effects of cross-border M&A network on Chinese enterprises’ green innovation," Economic Modelling, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:ecmode:v:134:y:2024:i:c:s0264999324000609
    DOI: 10.1016/j.econmod.2024.106704
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    More about this item

    Keywords

    Cross-border M&A network; Green innovation; Short-term effect; Long-term effect;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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