Peer effect in mergers and acquisitions for green innovation
This paper investigates the existence and moderating mechanisms of the peer effect in mergers and acquisitions for green innovation (GIM&As). Using Chinese GIM&A data from 2010 to 2023, we find that there is peer effect in GIM&As. In other words, a firm’s GIM&A decisions will be affe...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-05-01
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| Series: | Journal of Innovation & Knowledge |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25000794 |
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| author | Yue Gu Wenwu Xie Xiaoxia Qian Jiamin Lv |
| author_facet | Yue Gu Wenwu Xie Xiaoxia Qian Jiamin Lv |
| author_sort | Yue Gu |
| collection | DOAJ |
| description | This paper investigates the existence and moderating mechanisms of the peer effect in mergers and acquisitions for green innovation (GIM&As). Using Chinese GIM&A data from 2010 to 2023, we find that there is peer effect in GIM&As. In other words, a firm’s GIM&A decisions will be affected by its peers’ GIM&As. More importantly, we uncover the novel mechanisms of a firm’s internal and external factors on the GIM&A peer effect. As for internal factors, a firm with higher ESG performance tends to adopt similar GIM&A strategies as its peers because it has more pressure to maintain its green reputation to sustain the competitive advantage. Moreover, higher managerial ability enables firms to make decisions more independently, rather than blindly imitating their peers’ GIM&As without considering their own characteristics and long-term development objectives. As for external factors, increasing environmental policies will weaken the GIM&A peer effect among firms by improving information sufficiency. Meanwhile, the GIM&A peer effect harms firms’ business performance because it may lead firms to initiate irrational deals that are either beyond their developmental needs or undertaken without adequate preparation. Our study provides convincing evidence and valuable advice for both firms and policymakers and helps them to reduce irrational imitations, thus better achieving the green innovation goals. |
| format | Article |
| id | doaj-art-ed759478a63d4079a4ccbe2f509b4191 |
| institution | OA Journals |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-ed759478a63d4079a4ccbe2f509b41912025-08-20T02:26:14ZengElsevierJournal of Innovation & Knowledge2444-569X2025-05-0110310073410.1016/j.jik.2025.100734Peer effect in mergers and acquisitions for green innovationYue Gu0Wenwu Xie1Xiaoxia Qian2Jiamin Lv3Institute of Digital Finance, Hangzhou City University, Hangzhou 310015, ChinaInstitute of Digital Finance, Hangzhou City University, Hangzhou 310015, ChinaPeople’s Bank of China- Zhejiang Branch, Hangzhou 310001, ChinaInstitute of Digital Finance, Hangzhou City University, Hangzhou 310015, China; Corresponding author.This paper investigates the existence and moderating mechanisms of the peer effect in mergers and acquisitions for green innovation (GIM&As). Using Chinese GIM&A data from 2010 to 2023, we find that there is peer effect in GIM&As. In other words, a firm’s GIM&A decisions will be affected by its peers’ GIM&As. More importantly, we uncover the novel mechanisms of a firm’s internal and external factors on the GIM&A peer effect. As for internal factors, a firm with higher ESG performance tends to adopt similar GIM&A strategies as its peers because it has more pressure to maintain its green reputation to sustain the competitive advantage. Moreover, higher managerial ability enables firms to make decisions more independently, rather than blindly imitating their peers’ GIM&As without considering their own characteristics and long-term development objectives. As for external factors, increasing environmental policies will weaken the GIM&A peer effect among firms by improving information sufficiency. Meanwhile, the GIM&A peer effect harms firms’ business performance because it may lead firms to initiate irrational deals that are either beyond their developmental needs or undertaken without adequate preparation. Our study provides convincing evidence and valuable advice for both firms and policymakers and helps them to reduce irrational imitations, thus better achieving the green innovation goals.http://www.sciencedirect.com/science/article/pii/S2444569X25000794Q55O30G30 |
| spellingShingle | Yue Gu Wenwu Xie Xiaoxia Qian Jiamin Lv Peer effect in mergers and acquisitions for green innovation Journal of Innovation & Knowledge Q55 O30 G30 |
| title | Peer effect in mergers and acquisitions for green innovation |
| title_full | Peer effect in mergers and acquisitions for green innovation |
| title_fullStr | Peer effect in mergers and acquisitions for green innovation |
| title_full_unstemmed | Peer effect in mergers and acquisitions for green innovation |
| title_short | Peer effect in mergers and acquisitions for green innovation |
| title_sort | peer effect in mergers and acquisitions for green innovation |
| topic | Q55 O30 G30 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25000794 |
| work_keys_str_mv | AT yuegu peereffectinmergersandacquisitionsforgreeninnovation AT wenwuxie peereffectinmergersandacquisitionsforgreeninnovation AT xiaoxiaqian peereffectinmergersandacquisitionsforgreeninnovation AT jiaminlv peereffectinmergersandacquisitionsforgreeninnovation |