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Corporate social responsibility and cross-border M&A: The moderating effect of institutional distance

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  • Haiting Li
  • Shuzhen Li
  • Xiangcen Zhan
  • Feng Zhang
  • Mingwei Sun

Abstract

Drawing upon a dataset of cross-border mergers and acquisitions (M&A) events of Chinese enterprises from 2010 to 2017, this study investigates the impact of corporate social responsibility (CSR) on the completion of cross-border M&A with a focus on the moderating role of institutional distance. The results highlight the significance of CSR on the completion of cross-border M&A. The robustness tests including changing estimation model, new measurements, propensity score matching, and instrumental variable tests show that the main results are consistent. Second, both formal and informal institutional distance have positive moderating effects of CSR on the completion of cross-border M&A.

Suggested Citation

  • Haiting Li & Shuzhen Li & Xiangcen Zhan & Feng Zhang & Mingwei Sun, 2022. "Corporate social responsibility and cross-border M&A: The moderating effect of institutional distance," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-17, January.
    • Handle: RePEc:plo:pone00:0262343
    DOI: 10.1371/journal.pone.0262343
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    References listed on IDEAS

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    Cited by:

    1. Xing Rong & Tingting Zhang & Kai Liu, 2022. "The impact of insurance institutional investors on corporate value from selection and creation perspective," PLOS ONE, Public Library of Science, vol. 17(7), pages 1-27, July.
    2. Myznikava, Katsiaryna (Katherine) & Farinha, Jorge, 2023. "The impact of political freedoms on cross-border M&A abandonment likelihood," The Quarterly Review of Economics and Finance, Elsevier, vol. 91(C), pages 112-138.

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