Acquirer-Target CSR Alignment & M&A Performance. Short- and Long-Term Evidence from Europe and the U.S.
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2025-07-03
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en
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This study uses an event study approach to analyze 398 announced and 212 completed M&As involving firms headquartered in Europe and the United States to examine the impact of acquirer-target corporate social responsibility CSR alignment on M&A performance The short-term performance is measured using cumulative abnormal returns (CARs) over a three-day event window around the announcement. The long-term performance is measured using Buy-and-Hold Abnormal Returns (BHARs) in the three years after completing the M&A deal. This thesis uses multiple regressions to analyze the effect of CSR alignment and combined acquirer-target CSR engagement on firm performance, while controlling for firm- and deal-specific factors. The different robustness checks include subsample analyses based on the financial system and a different regression for the ESG pillars, as well as the inclusion of a squared term for the combined CSR engagement to test for potential non-linear effect. The results of this thesis show no statistically significant relationship between CSR alignment or combined CSR engagement and acquirer performance in both the short and long-term. The findings of the thesis do not show that CSR alignment between the acquirer and the target is a key driver of M&A performance within the sample.
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Faculteit der Managementwetenschappen