Green total-factor energy efficiency gains through green mergers and acquisitions: An analysis of internal and external mechanisms

Green mergers and acquisitions have become a prominent subject in current research, emphasizing low-carbon strategies and technological innovations. This study investigates the mechanisms through which green mergers and acquisitions affect green total-factor energy efficiency. The analysis is grounded in data from 396 Chinese listed companies in heavily polluting sectors from 2010 to 2022. The research establishes an index system to evaluate green total-factor energy efficiency and employs the SBM-GML index for empirical analysis. The results show that green total-factor energy efficiency increased over the sample period, with the SBM-GML index rising from 0.830 in 2010 to 1.148 in 2022, indicating a transition from productivity decline to sustained efficiency growth. Empirical evidence reveals that firms engaging in green mergers and acquisitions exhibit higher green total-factor energy efficiency than non-green mergers and acquisition firms, with green mergers and acquisitions contributing to an approximately 1-2% improvement in green total-factor energy efficiency. Mechanism analyses suggest that this effect operates through internal and external channels, particularly via enhanced green technology innovation and increased access to government subsidies. Heterogeneity analysis indicates that the positive impact of green mergers and acquisitions is more pronounced in labor-intensive industries and sectors characterized by lower market competition. These findings highlight the role of green mergers and acquisitions as an effective market-based instrument for improving energy efficiency and advancing green transformation in heavily polluting industries. The study provides policy implications for promoting environmentally oriented mergers and acquisitions, improving environmental information disclosure, and strengthening government support mechanisms to foster green efficiency.