The Impact Of Corporate Social Responsibility On The Performance Of Cross-Border Mergers And Acquisitions

The total growth rate of cross-border M&A of Chinese enterprises in 2021 is 19%,COVID-19 currently,the pace of cross-border M&A of Chinese enterprises has never slowed down.With the increasing openness of China,cross-border M&A has become the choice of more enterprises for foreign investment.Compared with other foreign investment methods,cross-border M&A can bypass the trade barriers of host countries to a certain extent and help enterprises to develop a wide market.Many enterprises often go to developed countries to make M&As in order to obtain the technology premium and brand premium of the target company,and developed countries often require enterprises to fulfill a high level of CSR,but the fulfillment of CSR requires enterprises to pay capital and human costs.Based on this,this paper combines realistic situation and research space,and utilizes a sample of 215 completed cross-border M&As in the A-share markets from 2011-2019 to further explore the impact mechanism of CSR on cross-border M&A performance.this paper selects CSR as the independent variable,divides external stakeholder CSR and internal stakeholder CSR as subdivision dimension independent variables,and measures the dependent variables by adopting event study method and accounting study method,respectively,and selects CAR of 15 days before and after the M&A date to measure the short-term M&A performance,and uses △ROE to measure long-term M&A performance.First,the results show that CSR has a positive effect on cross-border M&A performance.In addition,the relationship between internal stakeholder CSR and longterm cross-border M&A is significantly positive in all dimensions,except for internal stakeholder CSR,which is not related to long-term cross-border M&A;second,this paper finds that internal control plays a partially mediating role in the relationship between CSR and long-term M&A performance,where internal control plays a partially mediating role between external stakeholder CSR and long-term M&A performance;third,media attention only positively moderates the relationship between external stakeholder CSR and short-term M&A performance and long-term M&A performance.In further analysis,first,by splitting the sample according to the nature of ownership,this paper finds that both SOEs and non-SOEs fulfill CSR to promote shortterm cross-border M&A performance,while non-SOEs fulfill CSR to achieve better long-term M&A performance than SOEs;second,by splitting the sample according to whether cash payment is used in the process of cross-border M&A,the results show that compared to cash payment,firms that use non-cash payment are more likely to achieve better short-term and long-term performance;third,according to the subsample test of CSR disclosure,voluntary disclosure of CSR is more likely to promote short-term performance than mandatory disclosure,while in the long-term dimension,no matter which disclosure method is used,the long-term performance of CSR can be improved.Finally,by analyzing the empirical results,the following suggestions are made:first,firms should focus on social responsibility management before,during and after cross-border M&As;second,improve the quality of internal control and enhance internal governance;third,make reasonable use of external media platforms to release favorable signals;and fourth,adjust the payment methods of cross-border M&As to guide expectations.