Boston University Libraries OpenBU
    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    •   OpenBU
    • Theses & Dissertations
    • Boston University Theses & Dissertations
    • View Item
    •   OpenBU
    • Theses & Dissertations
    • Boston University Theses & Dissertations
    • View Item

    The impact of targets' social performance on acquisition premiums

    Thumbnail
    Date Issued
    2014
    Author(s)
    Malik, Mahfuja
    Share to FacebookShare to TwitterShare by Email
    Export Citation
    Download to BibTex
    Download to EndNote/RefMan (RIS)
    Metadata
    Show full item record
    Permanent Link
    https://hdl.handle.net/2144/11128
    Abstract
    This study examines whether the corporate social responsibility (CSR) performance of the target firms influences the acquisition premiums paid by the acquirers. Using U.S. public merger and acquisition (M&A) deals, I found that acquisition premiums increase in the targets' perceived CSR quality, an effect incremental to previously documented drivers of such premiums. These findings are robust to (1) using four proxies for CSR measures, and (2) using three proxies for acquisition premiums. Greater value-enhancing and synergistic capabilities of targets with superior quality CSR, acquirers' environmental, social and reputational risk protection needs, and market imperfections- related incorrect valuation of CSR activities are possible explanations for this observed positive association between targets' CSR and acquisition premiums. Analysis specific to each CSR attribute reveals that targets' environmental performance has positive and the strongest effects on acquisition premiums. In addition, superior-quality community and diversity influence acquisition premiums significantly and positively. However, this analysis does not indicate any consistent association between target firms' product attributes and acquisition premiums. Additionally and perhaps more strikingly, this investigation reports a significant negative association between targets' employee relations and acquisition premiums. Additional tests document that the positive association between target firms' perceived CSR quality and acquisition premiums is stronger for acquirers with high quality CSR and large targets. Overall, in this study, I combine the CSR and M&A literature by demonstrating that superior quality CSR performance affects acquisition premiums positively. Thus, this study expands our understanding of the value-enhancing role of CSR by studying the M&A market.
    Description
    Thesis (Ph.D.)--Boston University
    Collections
    • Boston University Theses & Dissertations [7858]


    Boston University
    Contact Us | Send Feedback | Help
     

     

    Browse

    All of OpenBUCommunities & CollectionsIssue DateAuthorsTitlesSubjectsThis CollectionIssue DateAuthorsTitlesSubjects

    Deposit Materials

    LoginNon-BU Registration

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Boston University
    Contact Us | Send Feedback | Help