Navigating the evolution: a comprehensive review of sustainable finance in mergers and acquisitions

The global shift in corporate philosophy from wealth maximization to share value creation has propelled sustainable finance into the forefront of research endeavours. Despite its significance, the realm of sustainable finance, especially in the context of mergers and acquisitions, remains relatively underexplored.

This research intends to identify the gap by conducting a cutting-edge and expansive systematic review, unravelling the intricate layers of sustainable finance concerning mergers and acquisitions.

The data source is Web of Science to start with, yielding 41 publications. A similar search on Scopus yielded 52 articles. Not surprisingly, the 41 publications discovered via the Web of Science search were also found in the Scopus results.

Papers on business, management, environmental studies, corporate finance, economics, and ethics are featured.

Employing advanced methodologies including machine learning tools, our research delves into domain specific influential papers, top-contributing journals, noteworthy authors, institutions, and nations. By dissecting the context and methodologies employed in scholarly works, we aim to instil a through overview of the current body of knowledge. our study categorizes the selected scholarly research into four distinct objectives, facilitating a nuanced understanding of the diverse perspectives within the field. Each stratum of papers is meticulously analysed and discussed, offering insights into key themes and patterns. To guide future research initiatives, we present a synthesis of pertinent research questions, exploring avenues such as the incorporation of innovative financial instruments like green bonds and artificial intelligence.

Since the Sustainable Development Goals were introduced in 2016, sustainable finance has become an increasingly important topic in merger and acquisition research. Research is progressing at a rapid pace in China and Australia, while emerging nations are falling behind. In addition, this study specifies the necessity of conducting a more comprehensive examination of the habits of company representatives regarding sustainable investments. This aspect has been neglected in earlier research. Additionally, because global M&As are becoming more common, research on cross-border M&As must take precedence over domestic ones. Finally, there is a gap in the current body of knowledge about greenwashing, green audits, and the use of AI in sustainable finance.

Machine learning and big data analytics may help scholars get a more thorough grasp of the historical and present significance of sustainability in M&A. New era researchers may advance the potential yet unexplored topics.