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Assessing the Mediating Role of Environmental Policy through the Lens of Merger and Acquisitions for Sustainable Environment
Tajamul Altaf
Abstract:
Sustainability in the environment could be seen as interfering with economic growth. When it comes to resource allocation through economic operations like mergers and acquisitions, environmental policy is crucial for promoting environmental sustainability. This study explores the environmental policy-based process by which mergers and acquisitions affect sustainable environmental development. We demonstrate how mergers and acquisitions have a significant beneficial impact on environmental sustainability using panel data of the Chinese listed companies. The study shows that environmental policy when mediating environmental sustainability and mergers and acquisitions enhances the environmental structure of a firm and leads to improving environmental sustainability. In turn, this effect can improve business management in several areas, particularly in sustainable environmental development. Considering these results, this study suggests that the government may enhance the role of environmental policy by encouraging firms to use environmentally friendly resources through mergers and acquisitions, which will promote and protect environmental sustainability.
Keywords:
Environmental Policy; Merger and Acquisition; Environmental Sustainability; Probit and Logit Models; SDGs
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