IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v283y2023ics0360544223025690.html
   My bibliography  Save this article

Can low-carbon mergers and acquisitions reduce carbon emissions? Evidence from China's energy companies

Author

Listed:
  • Li, He
  • Lu, Juan

Abstract

This study analyzes the impact of low-carbon mergers and acquisitions (LCMA) on carbon emissions (CEM) of listed energy companies. Results show that: (1) Compared to energy companies without LCMA, LCMA can reduce CEM by 2.4%. (2) Stock-paid LCMA, horizontal LCMA, multi-frequency LCMA and local LCMA can more effectively reduce CEM of energy companies. (3) LCMA may reduce CEM by increasing low-carbon technology innovation, environmental investment, information transparency and internal control quality. However, LCMA may exacerbate CEM by increasing merger and acquisition expenses, production scale, management costs, and performance pressures. (4) LCMA has greater inhibitory effects on CEM of eastern companies, large-scale companies and mature-stage companies. (5) Spillover effects of LCMA in the same region are more significant than those in the same industry. This study is beneficial for providing LCMA recommendations for carbon reduction in energy firms.

Suggested Citation

  • Li, He & Lu, Juan, 2023. "Can low-carbon mergers and acquisitions reduce carbon emissions? Evidence from China's energy companies," Energy, Elsevier, vol. 283(C).
    • Handle: RePEc:eee:energy:v:283:y:2023:i:c:s0360544223025690
    DOI: 10.1016/j.energy.2023.129175
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223025690
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.129175?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Xiaoguang & Ji, Qiang & Yu, Jian, 2021. "Sustainable development goals and firm carbon emissions: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 103(C).
    2. Monastyrenko, Evgenii, 2017. "Eco-efficiency outcomes of mergers and acquisitions in the European electricity industry," Energy Policy, Elsevier, vol. 107(C), pages 258-277.
    3. Hu, Guoheng & Can, Muhlis & Paramati, Sudharshan Reddy & Doğan, Buhari & Fang, Jianchun, 2020. "The effect of import product diversification on carbon emissions: New evidence for sustainable economic policies," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 198-210.
    4. Peng, Weicai & Lu, Shibao & Lu, Wenjing, 2022. "Green financing for the establishment of renewable resources under carbon emission regulation," Renewable Energy, Elsevier, vol. 199(C), pages 1210-1225.
    5. Li, He & Lu, Juan & Guo, Feiyu, 2022. "High speed rail and corporate social responsibility performance: Analysis of intra-regional location and inter-regional spillover," Transport Policy, Elsevier, vol. 128(C), pages 65-75.
    6. Konadu, Renata & Ahinful, Gabriel Sam & Boakye, Danquah Jeff & Elbardan, Hany, 2022. "Board gender diversity, environmental innovation and corporate carbon emissions," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    7. Fan, Pengda & Qian, Xuepeng & Wang, Jian, 2023. "Does gender diversity matter? Female directors and firm carbon emissions in Japan," Pacific-Basin Finance Journal, Elsevier, vol. 77(C).
    8. Li, He & Lu, Juan, 2021. "Can stable environmental protection officials’ tenure reduce illegal emissions?," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    9. Wang, Jiaqi & Tian, Jiaxin & Kang, Yuxin & Guo, Kun, 2023. "Can green finance development abate carbon emissions: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 73-91.
    10. Huang, Peng & Officer, Micah S. & Powell, Ronan, 2016. "Method of payment and risk mitigation in cross-border mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 40(C), pages 216-234.
    11. Fabio Caputo & Simone Pizzi & Lorenzo Ligorio & Rossella Leopizzi, 2021. "Enhancing environmental information transparency through corporate social responsibility reporting regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3470-3484, December.
    12. Kobeissi, Nada & Sun, Xian & Wang, Haizhi, 2010. "Managerial labor-market discipline and the characteristics of merger and acquisition transactions," Journal of Business Research, Elsevier, vol. 63(7), pages 721-728, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lu, Juan & Li, He & Yang, Ran, 2024. "Effects of environmental liability insurance on illegal pollutant discharge of heavy polluting enterprises: Emission reduction incentives or pollution protector?," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu, Juan & Li, He & Guo, Feiyu, 2024. "Low-carbon mergers and acquisitions as a driver for higher energy efficiency: Evidence from China's high energy-consuming companies," Energy, Elsevier, vol. 290(C).
    2. Lu, Juan & Li, He & Yang, Ran, 2024. "Effects of environmental liability insurance on illegal pollutant discharge of heavy polluting enterprises: Emission reduction incentives or pollution protector?," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    3. Huang, Haiping & Huang, Baolian & Sun, Aijun, 2023. "How do mineral resources influence eco-sustainability in China? Dynamic role of renewable energy and green finance," Resources Policy, Elsevier, vol. 85(PA).
    4. Ying Li & Yung-Ho Chiu & Tai-Yu Lin & Tzu-Han Chang, 2020. "Pre-Evaluating the Technical Efficiency Gains from Potential Mergers and Acquisitions in the IC Design Industry," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 525-559, April.
    5. Leonidas G Barbopoulos & Jo Danbolt & Dimitris Alexakis, 2018. "The role of earnout financing on the valuation effects of global diversification," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(5), pages 523-551, July.
    6. Guo, Dongmei & Li, Qin & Liu, Peng & Shi, Xunpeng & Yu, Jian, 2023. "Power shortage and firm performance: Evidence from a Chinese city power shortage index," Energy Economics, Elsevier, vol. 119(C).
    7. Azevedo, Alcino & Pereira, Paulo J. & Rodrigues, Artur, 2018. "Non-compete covenants, litigation and garden leaves," Journal of Business Research, Elsevier, vol. 88(C), pages 197-211.
    8. Zhang, Rui & Sharma, Rajesh & Tan, Zhixiong & Kautish, Pradeep, 2022. "Do export diversification and stock market development drive carbon intensity? The role of renewable energy solutions in top carbon emitter countries," Renewable Energy, Elsevier, vol. 185(C), pages 1318-1328.
    9. Yulia Vertakova & Inga Vselenskaya & Vladimir Plotnikov, 2021. "Mergers and Acquisitions Risk Modeling," JRFM, MDPI, vol. 14(9), pages 1-24, September.
    10. Xiang Zhang & Yanan Wang & Zongyi Zhang & Hongyu Long, 2022. "How Does Environmental Information Disclosure Affect Public Health? Evidence from the New Ambient Air Quality Standards," IJERPH, MDPI, vol. 19(22), pages 1-20, November.
    11. Valenza, Giuseppe & Damiano, Rodolfo, 2023. "Sustainability reporting and public value: Evidence from port authorities," Utilities Policy, Elsevier, vol. 81(C).
    12. Benkraiem, Ramzi & Dubocage, Emmanuelle & Lelong, Yann & Shuwaikh, Fatima, 2023. "The effects of environmental performance and green innovation on corporate venture capital," Ecological Economics, Elsevier, vol. 210(C).
    13. de Bodt, Eric & Cousin, Jean-Gabriel & Officer, Micah S., 2022. "Financial constraints, ownership dilution, and the method of payment in M&A transactions," Journal of Corporate Finance, Elsevier, vol. 75(C).
    14. Zhu, Bing & Xia, Xiaoxue & Zheng, Xiaojia, 2021. "One way out of the share pledging quagmire: Evidence from mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 71(C).
    15. Saudi‐Yulieth Enciso‐Alfaro & Isabel‐María García‐Sánchez, 2023. "Corporate governance and environmental sustainability: Addressing the dual theme from a bibliometric approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1025-1041, May.
    16. Ligorio, Lorenzo & Caputo, Fabio & Venturelli, Andrea, 2022. "Sustainability disclosure and reporting by municipally owned water utilities," Utilities Policy, Elsevier, vol. 77(C).
    17. Al-Hadi, Ahmed & Habib, Ahsan, 2023. "Consequences of state-level regulations in accounting, finance, and corporate governance: A review," Advances in accounting, Elsevier, vol. 60(C).
    18. Amel-Zadeh, Amir & Meeks, Geoff, 2019. "Bidder earnings forecasts in mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 373-392.
    19. Alfredo Coelho & Victor Manuel Castillo-Girón, 2020. "The Medium of Exchange in Mergers and Acquisitions: The Cases of Travel Agencies and Tour Operators," Administrative Sciences, MDPI, vol. 10(4), pages 1-13, November.
    20. Pei-Pei Jiang & Yuan Wang & Jin Luo & Lin Zhu & Rui Shi & Song Hu & Xiaodong Zhu, 2023. "Measuring static and dynamic industrial eco-efficiency in China based on the MinDS–Malmquist–Luenberger model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5241-5261, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:283:y:2023:i:c:s0360544223025690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.