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Is Corporate Social Responsibility an Agency Problem? An Empirical Note from Takeovers

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  • Mussa Hussain
  • Nazim Hussain
  • Duc Khuong Nguyen
  • Ugo Rigoni

Abstract

We rely on the agency motives of the takeover premium to empirically examine whether and how the acquirer?s corporate social responsibility (CSR) performance influences the premiums paid in takeovers. Using a large sample of US takeovers that took place over the period from 1992 to 2014, our results mainly reveal that higher CSR performance at the acquirer level is associated with higher takeover premium which is consistent with the shareholder expense view. Our results continue to hold after a battery of additional analyses.

Suggested Citation

  • Mussa Hussain & Nazim Hussain & Duc Khuong Nguyen & Ugo Rigoni, 2021. "Is Corporate Social Responsibility an Agency Problem? An Empirical Note from Takeovers," Working Papers 2021-006, Department of Research, Ipag Business School.
    • Handle: RePEc:ipg:wpaper:2021-006
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    Cited by:

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    2. Liu, Haiming & Chiang, Yao-Min, 2024. "Employment protection and environmental corporate social responsibility: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 92(C).
    3. Christoph Kayser & Henning Zülch, 2024. "Understanding the Relevance of Sustainability in Mergers and Acquisitions—A Systematic Literature Review on Sustainability and Its Implications throughout Deal Stages," Sustainability, MDPI, vol. 16(2), pages 1-44, January.
    4. Jadiyappa, Nemiraja & Chauhan, Yogesh, 2023. "Mandatory CSR regulation and R&D investments: Evidence from a quasi-natural experiment," Finance Research Letters, Elsevier, vol. 55(PA).
    5. Vo, Hong & Nguyen, Hien T. & Phan, Hieu V., 2024. "Corporate social responsibility and the choice of payment method in mergers and acquisitions," International Review of Financial Analysis, Elsevier, vol. 94(C).

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