Research On Corporate Social Responsibility,Reputation Capital And M&A Value Creation

Corporate social responsibility(CSR)has been included in the government work report for consecutive five years since 2015.The state has also issued a number of supporting policies related to targeted poverty alleviation,green development,charity and voluntary services,to encourage enterprises to actively fulfill their social responsibilities.The fulfillment of CSR can improve corporate reputation,increase stock price,bring better financial performance,earn the trust of stakeholders,and attract the attention of investors,etc.,which have become hot issues in practice and academia circles.CSR plays an increasingly important role in mergers and acquisitions(M&A)with the increasing concern from all sectors of society,and the researches on CSR are mostly related to financial performance,information disclosure,reputation,corporate value,and stakeholders,etc.,but the researches on CSR and M&A value creation are relatively few.Existing studies found that CSR can promote value creation of M&A,and positive social responsibility brings enterprise more reputation capital.However,most of the related researches are simply to verify the relationship between CSR and the value creation of M&A,while few research deeply explores the mechanism of action between CSR and the value creation of M&A.This research attempts to study the effect mechanism of CSR on the value creation of M&A from the intermediary perspective of reputation capital,which has important theoretical and academic value.This paper adopts a hybrid research method to mainly explore the mechanism of how CSR and reputation capital influence the value creation of M&A.Firstly,a representative case is selected to construct the mechanism model of CSR's influence on the value creation of M&A.Secondly,relevant variable is extracted from the case study,and the relationship between CSR and the value creation of M&A is empirically tested with large sample data.And it further explores the role of reputation capital in the relationship between them.The research of this paper founds that:(1)M&A enterprises achieve M&A value creation through the path of "value proposition--value action--the capital for reputation--value creation".(2)Construct the PARC model of the mechanism of CSR's influence on the value creation of M&A,that is,M&A enterprises fulfill CSR to accumulate reputation capital in various stages of M&A,and good capital reputation plays the role of "insurance",enable stakeholders to respond positively to the M&A,so as to realize the value creation of M&A.(3)M&A enterprises can increase the capital for reputation by fulfilling their social responsibilities,and enterprises with more capital for reputation can create higher M&A value.(4)Reputation capital plays an intermediary role in the relationship between CSR and long-term M&A value creation.Specifically,capital reputation plays a partial intermediary role from the perspective of social responsibility report disclosure;and it plays a full intermediary role from the perspective of social responsibility performance.