Research On Green M&A Performance Of Heavy-polluting Enterprises Under Environmental Regulation

In recent years,China has begun to focus on the quality of economic development instead of blindly pursuing speedy growth and neglecting the construction of ecological environment.In order to solve the contradiction between economic development and environmental protection,the government has introduced a series of guidelines and policies one after another to restrain the emission enterprises.Under the influence of environmental regulation,green M&A has become one of the important ways for Chinese enterprises to upgrade technology,reduce environmental pollution and transform to environmental protection industry.Among the M&A transactions that occurred in China’s A-share listed companies with heavy pollution from 2010-2019,nearly one-third belong to green M&A events,and green M&A should be paid attention to by the government and enterprises.With the emphasis on ecological protection and green development,the cement industry,as one of the "two high and one surplus" industries,has been the focus of government policies and is in urgent need of transformation and upgrading,and green M&A in the cement industry is gradually increasing.It is worth considering whether the performance of green M&As driven by environmental regulations is good or bad,and whether cement companies have really achieved green transformation through green M&As.This paper compares the research literature on environmental regulation and green M&A by scholars at home and abroad,and finds that scholars have analyzed the factors influencing the implementation of green M&A by heavy polluters mainly through empirical studies from the perspectives of media pressure and Confucian cultural influence;in terms of the impact of green M&A on corporate performance,studies have found that green M&A has a positive effect on corporate economic performance but no significant effect on corporate social performance.At present,there is a lack of research on green M&A.Based on the existing literature studies,this paper first analyzes the current situation of green M&A of heavy polluting enterprises in China through the data of green M&A of A-share listed companies in China from 2010-2019,and then takes the case of Jidong Cement’s M&A of Mangrove Environmental Protection as an example to explore the motives of green M&A by enterprises,and analyzes the impact of green M&A on enterprise performance from three perspectives: market response,financial performance and environmental performance.First,the event study method is used to calculate the excess return rate and cumulative excess return rate of the company’s stock during the five trading days before and after the announcement of the green M&A,so as to analyze the short-term capital market reaction of the company;then,the economic performance of the company’s implementation of the green M&A is analyzed by analyzing the changes of the company’s main business operation and financial indicators;finally,environmental performance indicators are created based on previous scholars’ studies.The environmental performance performance of enterprises is measured by scoring the relevant data disclosed in the annual reports and social responsibility reports of enterprises.According to the above research results,this article finds that in the short term,in terms of the capital market response,Jidong Cement ’s stock market responds to the overall better,and investors are positive.Not obvious;green mergers and acquisitions can improve corporate environmental performance.Because the case selected in this article can only obtain corporate data for one year after mergers and acquisitions,it is difficult to measure long-term M & A performance.This article enriches the research results of green mergers and acquisitions of heavy pollution companies in the form of case research.It can also provide reference for green mergers and acquisitions decisions for heavy pollution companies in my country and implementing green transformation.