Can low-carbon mergers and acquisitions reduce carbon emissions? Evidence from China's energy companies

This study analyzes the impact of low-carbon mergers and acquisitions (LCMA) on carbon emissions (CEM) of listed energy companies. Results show that: (1) Compared to energy companies without LCMA, LCMA can reduce CEM by 2.4%. (2) Stock-paid LCMA, horizontal LCMA, multi-frequency LCMA and local LCMA can more effectively reduce CEM of energy companies. (3) LCMA may reduce CEM by increasing low-carbon technology innovation, environmental investment, information transparency and internal control quality. However, LCMA may exacerbate CEM by increasing merger and acquisition expenses, production scale, management costs, and performance pressures. (4) LCMA has greater inhibitory effects on CEM of eastern companies, large-scale companies and mature-stage companies. (5) Spillover effects of LCMA in the same region are more significant than those in the same industry. This study is beneficial for providing LCMA recommendations for carbon reduction in energy firms.