Cross-Border Mergers and Acquisitions and CSR Performance: Evidence from China

Xiaomeng Chen (), Xiao Liang () and Hai Wu ()
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Xiaomeng Chen: Macquarie University
Xiao Liang: Nanjing Audit University
Hai Wu: Australian National University

Journal of Business Ethics, 2023, vol. 183, issue 1, No 13, 255-288

Abstract: Abstract We examine the effect of the cross-border merger and acquisition (M&A) activities of Chinese firms on their corporate social responsibility (CSR) performance. We find that Chinese acquirers significantly increase CSR performance and CSR spending following cross-border M&As. The legal origins and social norms of host countries are found to positively affect the acquirers’ CSR performance and CSR spending in the post-M&A period. The results are consistent with Chinese acquirers signaling their commitment toward CSR through cross-border M&As to respond to diverse stakeholder demands and strengthen corporate reputation. We also provide evidence that Chinese firms’ knowledge acquisition through cross-border M&As boosts green innovation. In addition, we show that the financial performance of Chinese acquirers does not suffer in the long term, indicating that strategic CSR investments can be integrated with other corporate investment activities. Our study demonstrates how cross-border M&As affect stakeholder value beyond value for shareholders.

Keywords: Cross-border M&As; Corporate Social Responsibility; Stakeholder Value (search for similar items in EconPapers)
JEL-codes: F21 G18 G34 M14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (11)

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DOI: 10.1007/s10551-021-05025-6

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