How does corporate social responsibility affect merger and acquisition performance?

Purpose – This study aims to demonstrate that fulfilling corporate social responsibility (CSR) is an inevitable requirement for sustainable development. Design/methodology/approach – Based on stakeholder theory, this study constructs a moderated mediation model between CSR and merger and acquisition (M&A) performance. Findings – The results of 990 M&A cases involving Chinese enterprises show that: CSR can enhance M&A performance; goodwill has a mediating effect between CSR and M&A performance; economic policy uncertainty strengthens the negative effect of goodwill on M&A performance; economic policy uncertainty moderates the mediating effect of goodwill between CSR and M&A performance; and the mechanism of the effect of CSR and M&A performance shows property rights and industry heterogeneity. Social implications – This study helps to avoid short-sighted M&A behavior and guides capital inflows toward more socially responsible enterprises, thereby promoting the transformation of business models toward sustainable development. Originality/value – This study not only verifies the positive relationship between CSR and M&A performance but also discovers the existence of a mediated mediation mechanism between the two.