Impact of target firm’s social performance on acquisition premiums

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE Journal of Contemporary Accounting & Economics Pub Date : 2024-03-21 DOI:10.1016/j.jcae.2024.100417
Mahfuja Malik , Md Al Mamun
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Abstract

This study investigates whether a target firm’s corporate social responsibility (CSR) influences the acquisition premium paid by an acquirer. Using the US public mergers and acquisitions (M&A) deals, this study finds that acquisition premium increases as targets’ perceived CSR quality increases, an effect incremental to previously documented drivers of such premiums. Additional findings reveal that the positive association between targets’ CSR quality and acquisition premiums is stronger for large targets and acquirers with high CSR performance. The study also documents that targets’ environmental performance has the strongest effects on acquisition premiums compared to other dimensions of CSR such as community, employees, diversity, or product. This study contributes to the literature by documenting the value of CSR in an unconventional manner using evidence from the M&A market. The findings are robust after controlling for the target-specific, acquirer-specific, deal-specific, and macro-economic variables and by using different proxies for CSR and acquisition premiums.

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目标公司的社会绩效对收购溢价的影响
本研究探讨了目标公司的企业社会责任(CSR)是否会影响收购方支付的收购溢价。利用美国公开并购交易,本研究发现,收购溢价会随着目标企业感知到的企业社会责任质量的提高而提高,这种效应是之前记录的溢价驱动因素的补充。研究还发现,对于大型目标公司和企业社会责任表现优异的收购方而言,目标公司的企业社会责任质量与收购溢价之间的正相关性更强。研究还表明,与企业社会责任的其他维度(如社区、员工、多样性或产品)相比,目标公司的环境绩效对收购溢价的影响最大。本研究利用并购市场的证据,以非常规的方式证明了企业社会责任的价值,为相关文献做出了贡献。在控制了特定目标、特定收购方、特定交易和宏观经济变量以及使用不同的企业社会责任和收购溢价替代物后,研究结果是稳健的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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