<![CDATA[This study examines shareholder reactions to green mergers and acquisitions using 72 transactions by US and Australian acquirers during 2018–2020. The sample pairs 36 green acquisitions with 36 propensity-score-matched non-green deals, identified through textual screening and industry classification. Event-study methodology with a three-day window [?1, +1] and multiple robustness tests reveals that green acquisitions initially generate higher cumulative abnormal returns than non-green deals (2.85% versus 0.90%). However, cross-sectional regression shows that this green premium becomes statistically insignificant once traditional merger determinants—relative deal size, cross-industry diversification, and market-to-book ratios—are controlled for. These findings indicate that investors evaluate green acquisitions through conventional financial metrics rather than assigning systematic premiums to environmental attributes. The study contributes to the green M&A literature by demonstrating that deal fundamentals, not environmental positioning, drive market reactions during a period of heightened ESG policy focus, with implications for corporate environmental strategy and sustainable finance policy.]]>
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