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Article

Chinese Financial Market Investors Attitudes toward Corporate Social Responsibility: Evidence from Mergers and Acquisitions

by 1,2,3, 1,2,* and 1
1
Faculty of Economics and Management, East China Normal University, Shanghai 200062, China
2
Shanghai M&A Financial Research Institute ECNU, Shanghai 200062, China
3
Central China Development Research Institute, Henan University, Kaifeng 475001, China
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(9), 2615; https://doi.org/10.3390/su11092615
Received: 9 April 2019 / Revised: 25 April 2019 / Accepted: 1 May 2019 / Published: 7 May 2019
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
As China’s economic development has shifted from quantitative growth to qualitative improvement, stakeholders have enforced stricter corporate social responsibility (CSR) requirements for listed companies. However, few studies have focused on companies and CSR in such developing economies. We used the CSR scoring system from Hexun Finance’s website to group Chinese listed companies according to their CSR scores. By comparing the effects of merger and acquisition (M&A) announcements on different CSR scores, we found that, first, the average abnormal return (AAR) response time of the low-CSR acquirers group was eight trading days, much longer than that of the medium-CSR (three trading days) and the high-CSR group (four trading days). Second, from five trading days before, and 15 trading days after the announcement date, the cumulative AAR (CAAR) of the acquirers in the low-CSR group was 0.270, much higher than those in medium- and high-CSR groups. Third, after considering the CSR scores for the two years prior to the M&A and controlling for other factors affecting the M&A, the CSR performance of the above-mentioned M&As was still negatively correlated with the M&A announcement effect. This point to the need for further studying CSR and M&A announcement effects for Chinese companies. View Full-Text
Keywords: corporate social responsibility; mergers and acquisitions; announcement effect; market investor response corporate social responsibility; mergers and acquisitions; announcement effect; market investor response
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MDPI and ACS Style

Zhang, F.; Li, M.; Zhang, M. Chinese Financial Market Investors Attitudes toward Corporate Social Responsibility: Evidence from Mergers and Acquisitions. Sustainability 2019, 11, 2615. https://doi.org/10.3390/su11092615

AMA Style

Zhang F, Li M, Zhang M. Chinese Financial Market Investors Attitudes toward Corporate Social Responsibility: Evidence from Mergers and Acquisitions. Sustainability. 2019; 11(9):2615. https://doi.org/10.3390/su11092615

Chicago/Turabian Style

Zhang, Fang, Minghui Li, and Meilan Zhang. 2019. "Chinese Financial Market Investors Attitudes toward Corporate Social Responsibility: Evidence from Mergers and Acquisitions" Sustainability 11, no. 9: 2615. https://doi.org/10.3390/su11092615

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