Can digital M&As promote green innovation? Evidence from manufacturing companies in China.

ABSTRACT: This paper examines whether and how digital mergers and acquisitions (hereafter, M&As) affect green innovation using a sample of Chinese manufacturing firms that have implemented digital M&As. We find that digital M&As significantly promote green innovation, with digital transformation and improved dynamic capabilities serving as the underlying mechanisms through which these effects occur. The results are robust with a battery of robustness checks. In addition, we find that digital M&As have a more significant effect on promoting green innovation among private and foreign-owned companies, large-scale companies, companies facing stronger government environmental regulations and companies in heavily polluting industries. Compared to strategic green innovation, digital M&As significantly incr

SUBMITTER: Wang X 

PROVIDER: S-EPMC12753063 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature