Research On The Driving Factors And Performance Of Green Mergers And Acquisitions In Heavily Polluting Enterprise

As China is seeking quality development,the demand for developing a green economy has become increasingly pressing.Especially after China put forward the goal of "carbon peak and carbon neutrality" in 2020,green and low-carbon transformation and sustainable development have become necessary pathways for achieving quality development of enterprises.Heavy polluting enterprises with the characteristics of "high energy consumption,pollution,and carbon emissions",in the reality of limited environmental resources,choose green mergers and acquisitions to transition to the stage of green production and development to achieve their own sustainable development,thereby realize the optimization and adjustment of the "green" industrial structure.Green mergers and acquisitions have become an important way to solve the contradiction between environmental resources and the economy.In this context,this paper examines the drivers and results of green M&As by heavily polluting enterprises,hence offering insights and recommendations to aid them in decision-making on green M&As.The paper first uses literature research methods to sort out domestic and foreign literature,define the concepts of heavily polluting enterprises,green mergers and acquisitions,and green mergers and acquisitions performance,and explain sustainable development theory,synergy theory,and the triple bottom line theory.Subsequently,theoretical analysis was conducted on the driving factors and performance of green mergers and acquisitions of heavily polluting enterprises,and a performance evaluation system for green mergers and acquisitions of heavily polluting enterprises was constructed.Finally,by combining the case analysis,event study,and principal component analysis methods,this paper analyzes the drivers for heavily polluting enterprises to implement M&As and the impact of such behavior on their economic,social,and environmental performance by examining Baosteel’s green M&A of WISCO.Through research,the paper draws the following conclusions: firstly,various internal and external factors affect heavily polluting enterprises’ adoption of green M&As.External factors are considered primary drivers,including restraints caused by formal environmental regulations from the government in the market,pressures caused by informal regulation from the news media and the public,and the forces driving the transformation of manufacturing towards green development.Internally,heavily polluting enterprises must prioritize their research and development capabilities in green technology to achieve successful green transformation.One effective approach for them to achieve this is acquiring green technology and R&D capabilities rapidly through green M&As.Secondly,a performance evaluation system has been constructed to analyze the performance of green M&As by heavily polluting enterprises with economic,environmental,and social performance as the main indicators based on the triple bottom line theory.This paper applies the event study method to evaluate the market’s response to green M&A transactions.As for economic performance,the paper analyzes the changes in economic performance with traditional financial indicators,and verifies the findings through principal component analysis.This paper applies the event study method to evaluate the market’s response to green M&A transactions.As for economic performance,the paper analyzes the changes in economic performance with traditional financial indicators,and verifies the findings through principal component analysis.As for social performance,this paper analyzes four tier-2 indicators:social responsibility,employee responsibility,safety production,and scientific research investment.As for environmental performance,this paper examines green production activities and green products of enterprises.Based on the analysis of changes in enterprises’ performance before and after green M&As,it is concluded that green M&As contribute significantly to the sustainable development of heavily polluting enterprises.Drawing on the case studies,this paper puts forth recommendations on green M&As by heavily polluting enterprises for government and the public and companies.