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Green mergers and acquisitions: Unveiling the greenwashing motive

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  • Jia, Xiao
  • Lei, Ziyu
  • Dai, Yunhao
  • Kong, Dongmin

Abstract

This study investigates the relationship between green mergers and acquisitions (M&As) and corporate greenwashing, using a sample of completed M&As in China from 2010 to 2021. We find that acquirers of green M&As are more likely to exhibit greenwashing behaviors following the transaction, as evidenced by increased environmental discussions without corresponding improvement in environmental investments, as well as higher environmental penalties. These acquirers benefit from more favorable market reactions, increased government subsidies, higher environmental ratings, and lower financing costs. Overall, our findings contribute to the growing literature on the strategic motivations underlying green M&As.

Suggested Citation

  • Jia, Xiao & Lei, Ziyu & Dai, Yunhao & Kong, Dongmin, 2026. "Green mergers and acquisitions: Unveiling the greenwashing motive," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612325026492
    DOI: 10.1016/j.frl.2025.109400
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