Corporate social responsibility learning in mergers and acquisitions

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

3 Scopus Citations
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Original languageEnglish
Number of pages25
Journal / PublicationAsia-Pacific Journal of Accounting and Economics
Online published23 Oct 2019
Publication statusOnline published - 23 Oct 2019


Using a large sample of mergers and acquisitions (M&As) in the U.S., we examine whether and how corporate social responsibility (CSR) spread between the target and acquirer affects firm value. We find that the stronger the target's CSR performance relative to the acquirer's, the higher the acquirer gains as well as synergy gains created by the acquisition. We also document acquirer's improvements in CSR performance and market performance following the acquisition of a target with higher CSR. Moreover, the positive effect of CSR spread on the acquirer is more pronounced when the target has stronger operating performance. Overall, we attribute the source of the value creation to acquirer's learning from the target's CSR practices and experiences.

Research Area(s)

  • Corporate social responsibility (CSR), spread, mergers and acquisitions (M&As), learning, FIRM, GOVERNANCE