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Global expansion and investment efficiency: The impact of overseas mergers and acquisitions on eco-friendly companies

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  • Liu, Xinglin
  • Yuan, Bo
  • Sun, Hongfeng
  • Yu, Haixu

Abstract

To address the development bottlenecks of China’s eco-friendly sector, this study investigates the impact of overseas mergers and acquisitions (M&As) on investment efficiency. The findings present that overseas M&As significantly improve investment efficiency by mitigating overinvestment. The effect is amplified when acquirers are overseas subsidiaries, equity ownership exceeds 50%, or host countries are developed economies. Mechanism analysis confirms that governance optimization and enhanced recognition of investment opportunities drive the improvement. This study provides actionable insights for global expansion of eco-friendly companies and policy implications for government and industry associations to support green internationalization.

Suggested Citation

  • Liu, Xinglin & Yuan, Bo & Sun, Hongfeng & Yu, Haixu, 2026. "Global expansion and investment efficiency: The impact of overseas mergers and acquisitions on eco-friendly companies," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325024973
    DOI: 10.1016/j.frl.2025.109248
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    References listed on IDEAS

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