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Government digital environment monitoring and firms’ green M&A

Author

Listed:
  • Chen, Xin
  • Long, Wenbin
  • Song, Xianzhong
  • Liu, Xin

Abstract

This study uses a sample of Chinese listed firms to investigate how digital environmental monitoring (DEM) affects firms’ green mergers and acquisitions (M&A). We find that firms subject to more intense DEM are more likely to initiate green M&A. Mechanism tests indicate that DEM improves the efficiency of environmental policy enforcement and optimises the allocation of environmental subsidies. Further analysis reveals that the impact of DEM is high in regions with strong environmental protection pressures and among firms that are located at provincial borders or experiencing financing constraints.

Suggested Citation

  • Chen, Xin & Long, Wenbin & Song, Xianzhong & Liu, Xin, 2025. "Government digital environment monitoring and firms’ green M&A," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325008669
    DOI: 10.1016/j.frl.2025.107607
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    References listed on IDEAS

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    1. Li, Zihao & Tang, Xuechun & Xu, Zihan & Mi, Feng, 2025. "How does the new energy demonstration city pilot affect corporate green M&A: Evidence of A-share listed companies in China," Finance Research Letters, Elsevier, vol. 85(PB).

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