Path selection for enterprises’ green transition: Green innovation and green mergers and acquisitions

This study explores the specific effects and mechanisms in the selection of a path to a green transition by polluters (PGT) from the perspective of different motivations for a green transition. We obtain three findings from our empirical results. First, by enabling firms to switch to a green industry, green mergers and acquisitions (GM&As) are a strategic choice for the purpose of obtaining legitimacy, but it is not conducive to PGT. However, green innovation (GI) motivated by a desire for efficiency motivation has a significant role in promoting PGT through upgrading firms' green efficiency. Second, the mechanism analysis indicates that GI is more conducive to strengthening firms' research and development (R&D) teams than GM&As. Third, green capital is an important market force that can effectively enhance green transition through GM&As.