Calls to better organize for business grow as institutional and social pressure to mitigate harmful ecological practices intensify. The study aims to tackle a research problem concerning the potential impact of ESG performance on the financial performance of mergers and acquisitions (M&As) in China. Prior to conducting the empirical analysis, the dataset is gathered from reputable sources, namely CSMAR and WIND. Specifically, a round of selection is made of Chinese A-share listed companies that have participated in M&A transactions between 2017 and 2023, thereby serving as the research subjects. The finding of this research reflects a positive correlation between ESG performance and the financial performance of the acquiring companies. Moreover, it is noteworthy that the target companies also can exert a positive influence on the financial performance of their acquirers. This study makes theoretical contributions to the field of Instrumental Stakeholder Theory and also has practical implications for managers, investors, and policymakers.