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

Chandrasekhar Krishnamurti · Syed M. M. Shams · Hasibul Chowdhury

35 citations0/0 files storedAustralian Journal of Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Social Responsibility Reporting Corporate Finance and Governance Merger and Competition Analysis

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

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 35 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1997THE CORPORATE SOCIAL PERFORMANCE-FINANCIAL PERFORMANCE LINK 1997Industry costs of equity 2010Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting 2013Corporate social responsibility and access to finance 2010Does Corporate Social Responsibility Affect the Cost of Capital?2006Corporate Social Responsibility: Strategic Implications*1997Detecting long-run abnormal stock returns: The empirical power and specification of test statistics

Cited by

2023Tradeoff between corporate investment and CSR: The moderating effect of financial slack, workforce slack, and board gender diversity 2025The influence of ESG on mergers and acquisitions decisions and organisational performance in UK firms: comparison between financial and non-financial sectors 2022Equity market response to natural disasters: Does firm's corporate social responsibility make difference?

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.