The short and long-term effects of cross-border M&A network on Chinese enterprises’ green innovation

How does cross-border mergers and acquisitions (M&A) network affect green innovation? To achieve pollution management and circular economy development, green innovation is the key path. However, little literature investigated the influence of cross-border M&A on green innovation from a network perspective. Using Chinese listed companies and an original database sourced from Zephyr of cross-border M&A deals from 2009 to 2019, this paper examines the short and long-term impact of the network on green innovation of Chinese corporations. It is suggested that the network plays a positive role in green innovation, which is not pronounced in the short term, but obvious in the long run. We further demonstrate that the long-term facilitating role is more evident for large enterprises, heavily polluting enterprises, non-high-tech enterprises, enterprises with deep knowledge base, and enterprises without myopic managers. Moreover, the long-term positive impact of cross-border M&A network on green innovation is augmented by corporate environmental responsibility and mitigated by government environmental protection subsidies.