The effect of CSR on the short-term abnormal returns of the acquiring firm
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2022-07-27
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en
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This thesis set out to analyse the effect of CSR on the short-term abnormal returns after a M&A. This was done by using two models. The first model consists of 135 deals and the second model consists of 628 deals, as for this model the CSR score of the target is not needed. The M&As within this sample are from anywhere in the world from the period of 1/1/2003 to 31/12/2021.
The study has not found a lot of significant CSR related variables. In the main hypothesis tests only the interaction term between the firm size and the CSR score had a significant effect on the short-term abnormal returns. Moreover, this result did not pass all the robustness tests. When testing the effect of CSR over time the results even showed a dislike towards a high environmental score of the acquirer in recent years. These results were not as expected. Within the robustness tests it was tried to explain these results with the Human Development Index of the country of the acquirer, but this did not result in an explanation. The results in general seem to indicate a certain scepticism and/or uninterest of investors towards CSR.
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Faculteit der Managementwetenschappen