Corporate Social Responsibility And Stakeholder Value Maximization

In the past 20 years,corporate social responsibility investment is an important part of the company's operations.Many companies may increase their corporate social responsibility investment,on the one hand,because of the long-term strategic perspective of enterprises,on the other hand from the pressure of stakeholders.At present,there are two viewpoints on the corporate social responsibility in the academic circle,one is the value maximization of the stakeholder,and the enterprise social responsibility is not only the embodiment of the good reputation of the enterprise,but also conveys the positive signal to the investors that the enterprise is operating well,so the stakeholders provide more resources for the enterprise,thereby increasing shareholder wealth.The other is the shareholder expense view,that the enterprise should not assume the social responsibility,the manager invests in the enterprise social responsibility can cause the shareholder benefit to be impaired.The theoretical basis of incorporatin g corporate social responsibility into enterprise merger and acquisition decision is stakeholder theory and contract theory,and resource acquisition is the junction of them.The ultimate goal of mergers and acquisitions is to obtain resources,enterprises to invest in corporate social responsibility is the object of stakeholder,these stakeholders whose interests are protected can provide resources for enterprises,so mergers and acquisitions can be integrated into the corporate social responsibility of the research field.Based on the above research background and motivation,according to the stakeholder theory and contract theory,this paper selects the CSR data from 2010 to 2015,and the corresponding data of acquisition and control variables duration is 2011-2016,studying the corporate social responsibility to the long-term and short-term mergers and acquisitions performance and the impact of completion time.The empirical results show that corporate social responsibility has a positive significant impact on both short-term and long-term mergers and acquisitions performance.Moreover,CSR has a negative impact on the completion time of the acquisition,and if the enterprise has better social responsibility performance,it will take less time to complete the acquisition.In order to study the effect of corporate social responsibility on stock return after acquisition,this paper chooses the stock market return data from 1995 to 2016.By dividing CSR into high CSR group and l ow CSR group,it returns the return analysis of stock return after merger.The empirical results show that when the holding period is 12 months and 24 months,the regression results of the two groups are similar,and the corporate social responsibility does not affect the stock return rate of the acquirer.However,when the holding period is 36 months,48 months and 60 months,the stock return rate of the high corporate Social responsibility group is significantly better,while the return of the stock return of the low CSR group is not significant.The results show that,from the long-term stock rate of return,corporate social responsibility does affect the market performance of the stock after the merger,and if the enterprise assume social responsibility more actively,the long-term market performance of the stock after the merger will be better.By proposing three hypotheses,this paper establishes four models to support stakeholders value maximization,not shareholder cost view.The policy recommendations putting forward in this paper are as follows: for mergers and acquisitions companies,the active commitment to social responsibility will not detract from shareholder benefits,but will increase corporate value.At the same time,in the process of mergers and acquisitions,the mergers and acquisitions companies should properly relocate the employees of the target companies,provide them with good career development and pay and benefits,and focus on the strategic integration and cultural integration after the merger.Enterprises also need to focus on maintaining the relationship with suppliers,government and other stakeholders,and actively pay taxes,protect the environment.Relevant departments should increase publicity efforts,so that enterprises recognize the importance of corporate social responsibility,voluntary commitment to corporate social responsibility,the social emergence of positive externalities.The government and relevant regulatory departments should continuously improve the relevant evaluation system and establish a sound supervision and disclosure mechanism.At the same time,the legislative departments should enact relevant laws and regulations,the corporate social responsibility from the moral level to the legal level,to protect the interests of mergers and acquisitions enterprises and stakeholders.