Purpose This paper aims to explore whether and how urban climate adaptation policy affects corporate green mergers and acquisitions (GMAs). Design/methodology/approach Using a difference-in-differences model, this paper identifies the causal effects of urban climate adaptation policy on GMAs. Findings Results reveal that urban climate adaptation policy would promote corporate GMAs. Specifically, after the urban climate adaptation policy implementation, corporate in pilot cities stimulated GMA activities by an average of 4.8% compared to those in non-pilot cities. This effect is more prominent for state-owned enterprises and corporate in high energy-intensive industries. Furthermore, the study findings show that improvement of institutional investors and an increase in analyst coverage are two channels. Originality/value This study advances a synergistic governance framework that integrates climate adaptation with environmental sustainability, offering actionable pathways for policymakers.
Lin et al. (Thu,) studied this question.