Local FinTech development and corporate green mergers and acquisitions: Evidence and mechanisms

Under China’s Dual Carbon goals and digital economy strategy, leveraging FinTech to facilitate corporate green mergers and acquisitions (M&As) has become increasingly important for sustainable development. Using a sample of Chinese A-share listed firms from 2013 to 2023, this study examines the impact of local FinTech development on corporate green M&As. The results indicate that local FinTech development significantly promotes green M&As, and this finding remains robust across various sensitivity tests. Mechanism analysis suggests that local FinTech development facilitates green M&As by reducing information asymmetry, alleviating financing constraints, lowering reliance on collateral, and improving the identification of firms’ environmental commitment. The positive effect is more pronounced among firms with higher energy consumption and those operating in less competitive markets. Overall, the findings highlight the important role of FinTech in supporting corporate green M&As and advancing sustainable economic development.