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Research of the Relationship between Corporate Social Responsibility and Acquisition Performance in Cross-border Acquisitions by Chinese Listed Companies: A View from Legitimacy Theory

Author(s)

Pengcheng Huang 1, Qi Yue1, Xing Hua2,*

Affiliation(s)

1School of Economics and Management, South China Normal University, Guangzhou, China 2School of Financing and Economics, Guangdong Vocational Institute of Public Administration, Guangzhou, China *Corresponding Author.

Abstract

This paper focuses the relationship between corporate social responsibility (CSR) and performance of cross-border acquisitions (CBAs) from a legitimacy perspective. With a sample of Chinese CBAs, the empirical analysis found that there is a U-shaped relationship between CSR levels and CBA performance. Specifically, due to changes and influences in legitimacy, CBA performance initially decreases and then increases with the enhancement of CSR. Further analysis reveals that the characteristics of the host country and the ownership structure of the acquiring company significantly moderate the relationship between CSR and CBA performance. This research enriches the understanding of factors influencing CBA performance in emerging market firms from the CSR perspective and enhances the institutional theory's explanation of Chinese firms' CBA behavior and performance. Additionally, it offers practical guidance for the strategic decision-making of Chinese enterprises in CBAs.

Keywords

Legitimacy; Corporate Social Responsibility (CSR); Performance of Cross-border Acquisitions; Ownership Structure of the Acquiring Company; Characteristics of the Host Country

References

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