IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v69y2024ipbs154461232401242x.html
   My bibliography  Save this article

Peer spillovers of environmental penalties - Evidence from green mergers and acquisitions

Author

Listed:
  • Yang, Jichen
  • Gu, Yali

Abstract

Using data on environmental penalties and green mergers and acquisitions in China from 2011 to 2022, we study the spillover effects of environmental penalties on peer firms. Our findings indicate that when firms within an industry are penalized for environmental violations, other firms in the same industry tend to increase their green merger and acquisition activities. This tendency is likely due to the heightened environmental concern resulting from the penalties. Furthermore, the spillover effect is more pronounced in firms with lower financial constraints and higher information transparency.

Suggested Citation

  • Yang, Jichen & Gu, Yali, 2024. "Peer spillovers of environmental penalties - Evidence from green mergers and acquisitions," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s154461232401242x
    DOI: 10.1016/j.frl.2024.106213
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232401242X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106213?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.

    More about this item

    Keywords

    Spillover effect; Corporate finance; Green merger and acquisitions;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    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:finlet:v:69:y:2024:i:pb:s154461232401242x. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.elsevier.com/locate/frl .

    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.