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|Title||Firm Performance and CSR during the Global Financial Crisis: Evidence from Mergers and Acquisitions|
|Institution||University of Zurich|
|Faculty||Faculty of Business, Economics and Informatics|
|Number of Pages||37|
|Abstract Text||Mergers and acquisitions (M&As) provide a good framework for shedding light on how corporate social responsibility (CSR) activities influence firms’ stock market performance. Using a large sample of US M&As, this study analyzes whether CSR created value for acquiring firms’ shareholders prior to and during the global financial crisis of 2007-2009. CSR scores are calculated using the MSCI ESG KLD Stats database. The results suggest that there is no effect of CSR on acquirer announcement returns. Additionally, no effect of CSR activities on acquirer announcement returns is found comparing the time period prior to the global financial crisis to the time period during the global financial crisis, suggesting that high CSR acquirers do not outperform during times of economic downturn. The empirical evidence, therefore, indicates that CSR has no impact on M&A performance and that therefore the performance must mainly be driven by other factors.|