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Kore University of Enna
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Prof. Dr. Gabriela Topa
Social and organizational Psychology, Universidad Nacional de Educacion a Distancia
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Home > Archives > Vol. 10 No. 11 (2025): published > Research Articles
ESP-3975

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2025-11-25

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Vol. 10 No. 11 (2025): published

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Research Articles

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Copyright (c) 2025 Ibrahim Khalil Ibrahim, Imad Abdullah Najm, Baydaa Essam Abdulrahman Jasim, Sabah Abdul Wahhab Abdul Razaaq AL-Nuiami, Waleed Nassar, Petro Zakharchenko

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Ibrahim Khalil Ibrahim, Imad Abdullah Najm, Baydaa Essam Abdulrahman Jasim, Sabah Abdul Wahhab, Abdul Razaaq AL-Nuiami, Waleed Nassar, & Petro Zakharchenko. (2025). Environmental and Financial Performance of Green Mergers and Acquisitions: Legal and Strategic Determinants of Sustainability Outcomes. Environment and Social Psychology, 10(11), ESP-3975. https://doi.org/10.59429/esp.v10i11.3975
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Environmental and Financial Performance of Green Mergers and Acquisitions: Legal and Strategic Determinants of Sustainability Outcomes

Ibrahim Khalil Ibrahim

Al-Turath University, Baghdad 10013, Iraq

Imad Abdullah Najm

Al-Mansour University College, Baghdad 10067, Iraq

Baydaa Essam Abdulrahman Jasim

Al-Mamoon University College, Baghdad 10012, Iraq

Sabah Abdul Wahhab

Al-Rafidain University College, Baghdad 10064, Iraq

Abdul Razaaq AL-Nuiami

Al-Rafidain University College, Baghdad 10064, Iraq

Waleed Nassar

Madenat Alelem University College, Baghdad 10006, Iraq

Petro Zakharchenko

State University of Information and Communication Technologies, Kiev, 03110, Ukraine


DOI: https://doi.org/10.59429/esp.v10i11.3975


Keywords: green mergers and acquisitions; corporate sustainability; financial performance; greenhouse gas emissions; energy efficiency; cost savings; ESG investment; regulatory compliance


Abstract

Green mergers and acquisitions (M&A) have emerged as a strategic mechanism through which firms pursue sustainability-oriented growth while navigating evolving environmental regulations and market expectations. However, empirical evidence explaining how these transactions influence environmental performance and financial outcomes remain fragmented. This study examines the effect of green M&A on greenhouse gas (GHG) emissions, energy efficiency, and waste reduction, while also evaluating post-merger financial metrics including revenue growth, cost savings, and production efficiency. Using a dataset of 2015–2025 transactions across renewable energy, sustainable manufacturing, agriculture, clean technology, and energy storage sectors, the study employs standardized environmental impact equations, financial performance models, and paired t-tests to evaluate changes over a three-year post-merger period.

The results show that green M&A firms achieve substantially greater sustainability gains compared to traditional M&A firms: a 28.6% reduction in GHG emissions, 19.3% improvement in energy efficiency, and 20.9% reduction in waste generation. Financial performance also improves significantly, with 12% revenue growth, 10.4% cost savings, and an 18.7% increase in production efficiency. These findings highlight that sustainability-driven M&A not only advances environmental responsibility but also consolidates long-term economic competitiveness.

The study concludes with recommendations for integrating environmental due diligence, ESG-driven valuation frameworks, and innovation-oriented integration strategies into future green M&A transactions. It further outlines policy implications for regulators and suggests future research directions including long-term (5–10 year) effects and cross-regional comparative studies.


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