دانلود رایگان مقاله انگلیسی واکنش بازار به تاثیر مسئولیت اجتماعی شرکتی در ادغام ها و اکتساب ها - الزویر 2018

abstract

This cross-country study examines a large sample of 1986 merger and acquisition (M&A) deals in 23 emerging market (EM) countries between 2008 and 2014 to investigate market reactions to deal announcements regarding the acquiringfirms with differentlevels of pre-merger corporate social responsibility (CSR) performance and under different degrees of agency cost concerns. We find that, neither positive stakeholder nor negative shareholder view alone can explain the CSR effects. The effects of CSR performance on market reactions to M&As depend mainly on the cost–benefit concerns of investors. While a higher level of acquirers’ pre-merger CSR performance could be helpful in conducting crossborder deals, market reactions to the CSR effects on such overseas deals still depend directly on the CSR cost concerns rather than indirectly on the CSR interests for deal efficiency. Evidence also shows that investors’ CSR cost concerns arise mainly from EM acquirers’ agency problems that could be effectively eased by country-level legal institutions rather than by firm-level governance mechanisms. Market investors with CSR agency concerns would not consider acquirers’ pre-merger CSR performance as a signal for investment during the deal announcement period, and that related CSR agency costs do impair the financial performance after the merger. Additionally, we confirm that the better governance quality of targets’ nations compared with that of acquirers’ nation is not valued by the market investors but significantly leads to the better long-term operating performance. Furthermore, we propose an argument disputing the conclusions of previous research that consider emerging countries collectively as examples of weak governance quality.

5. Conclusions

This study joins the ongoing debate about the effects of CSR activities on corporate performance with a focus on market reactions to M&A events among emerging markets. Our results provide the following empirical evidence.

First, wepresentthatinvestorshave their owncost–benefit concerns regarding the level of acquirers’ pre-merger CSR performance when responding to M&As. Market reactions to M&A performance cannot always be explained by the shareholder or the stakeholder theory.

Second, we find that investors have different expectations for how different SRI events will affect the success of M&As carried out by EM acquirers, and therefore have different agency cost concerns for different SRI events. Investors believe that EM acquirers may boost their CSR spending on environmental issues for reputation enhancement to increase the efficiency of deal-making; however, the benefits gained from such deals cannot cover the high costs of CSRinputs.Incontrast, EMinvestors believe thatthe costs relatedto a firm’s involvement in societal issues can be recovered by the benefits created from an acquisition investment, even if the acquirer’s social participation is beyond a certain level. Therefore, agency problems regarding CSR expenditure on environmental issues are EMinvestors’ crucial considerations whenresponding toM&As. The high quality of country-level legal institutions can effectively mitigate these CSR agency concerns; however, firm-level governance mechanisms alone are not sufficient to obtain investors’ trust.