Abstract: In recent years, green M&A has become an important way for enterprises to respond actively to ecological civilization construction. Taking the green M&A of A-share listed enterprises from 2010 to 2022 as samples, this paper analyzes the impact of the ESG performance of the active acquiring enterprises on the green M&A premium. The findings show that the good ESG performance of the acquiring enterprise or the high ESG matching degree of the merger and acquisition parties can inhibit the green M&A premium. The mechanism analysis indicates that the good ESG performance of the acquiring enterprise can reduce the degree of internal and external information asymmetry, enhance corporate reputation, reduce managers' self-serving behaviors, so as to inhibit the green M&A premium. The heterogeneity analysis reveals that the inhibitory effect of ESG performance of the acquiring company on the premium of green mergers and acquisitions is more significant in vertical and mixed mergers and acquisitions, and it is also more significant in the target companies that are heavily polluting. In addition, the better ESG performance of the acquiring enterprises, the higher degree of the matching between both sides of the M&A, the less impairment provision for goodwill of the acquiring company after M&A. Therefore, the government should establish a clearer ESG evaluation system and more detailed ESG disclosure requirements, and enterprises should fulfil their social responsibilities more actively, so as to inhibit the green M&A premium.

Key words: ESG performance, ESG matching, green M&A premium