Work

Evidence on the trade-off between corporate social responsibility and mergers and acquisitions investment

Year: 2020

Type: article

Abstract: In this article, we investigate whether there is a trade-off between corporate social responsibility (CSR) and mergers and acquisitions (M&A) investments. Consistent with conflict resolution view of stakeholder theory, our results document a negative relationship between CSR scores and M&A activity. We further show that the tendency of CSR firms’ low engagements in M&A investmen ts is valid only for firms with no slack. We also find that firms choosing to trade off pay a lower bid premium to targets to create value for acquiring shareholders. These findings are robust to several alternative proxies and endogeneity tests. JEL Classification: G32, G34

Source: Australian Journal of Management

DOI: 10.1177/0312896220950394

Authors: Chandrasekhar Krishnamurti, Syed Shams, Hasibul Chowdhury

Institutions: University of South Australia, University of Southern Queensland, The University of Queensland

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3085258069

FWCI: 2.932

Cites: 55

Cited by: 35

Related to: 10