The Impact of ESG Performance of Acquirer on the Long-Term Performance of Cross-Border Mergers and Acquisitions of China A-Share Listed Companies: An Analysis Based on Two-Way Fixed Effect and Threshold Effect

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

Summary

This manuscript presents an empirically grounded investigation into the relationship between ESG performance of acquiring firms and the long-term performance of cross-border M&As among A-share listed companies in China. Using panel data from 2010–2023 and employing two-way fixed effect models alongside threshold effect analysis, the study provides evidence supporting the positive influence of ESG performance on M&A outcomes. It also explores the mediating mechanisms via capital markets, product competitiveness, regulatory legitimacy, and internal synergy, and further discusses the moderating role of institutional complexity.
The topic is timely and relevant, contributing to both the ESG and international business literature, and has important policy and practical implications for Chinese firms expanding globally under sustainability imperatives.

Strengths

1. Timely topic aligned with China’s sustainable development goals and global ESG discourse.
2. Comprehensive hypothesis development grounded in liability of foreignness, resource acquisition theory, and institutional complexity.
3. Methodological rigor using two-way fixed effects, robustness checks, mediation, and threshold effect models.
4. Clear implications for corporate managers and policymakers in emerging markets.

Detailed Comments for Revisions

1. Clarify ESG Measurement and Data Source: The manuscript would benefit from more detail on how the ESG scores were constructed or sourced. A very abbreviated introduction in subsection 3.3.2 is not enough. Are these derived from third-party ESG rating agencies, self-reported disclosures, or a custom coding system? If applicable, clarify how the scores were normalized across time and sectors.
2. Threshold Variable Justification: The rationale for selecting "institutional complexity" as the threshold variable needs clearer operationalization. How is institutional complexity measured? Is it at the host country level (e.g., regulatory density, corruption index)? Please provide examples and cite sources.
3. Contribution Framing in Global Context: While the China focus is clear and justified, the manuscript could benefit from stronger articulation of its global relevance. How do these findings generalize to other emerging markets or inform international ESG practice and policy?
4. Improve Citation Style and Language Use: The current way of citing references within the main text is problematic and should be revised following standard publication formatting. Consider revising these for better flow. Acronyms such as BHAR (Line 312) and CAR (Line 328) should be introduced in full when first mentioned. The manuscript would also benefit from general proofreading to correct minor grammar and phrasing issues (e.g., Lines 51–53).
5. Clarify Mechanism Analysis Results: In Section 5.2, the authors claim a positive mediating effect of all listed variables, including Capital Market Resource. However, Table 7 shows a negative coefficient for this path. Please verify and reconcile this discrepancy, and provide a brief interpretation if the negative direction is correct.

Author Response

评论者 #1：

评论 1：澄清 ESG 衡量和数据来源：手稿将受益于有关 ESG 评分如何构建或来源的更多细节。在 3.3.2 小节中非常简短的介绍是不够的。这些是来自第三方 ESG 评级机构、自我报告的披露还是自定义编码系统？如果适用，请阐明分数如何跨时间和部门进行标准化。

响应 1： 谢谢你的建议。在第 3.3.2 小节（第 597-612 行）中，我们补充了有关华征 ESG 评级的来源以及华征 ESG 评级如何转化为 ESG 评分的详细信息。

 

评论 2：阈值变量理由：选择“机构复杂性”作为阈值变量的基本原理需要更明确的作化。如何衡量机构复杂性？是否在东道国层面（例如，监管密度、腐败指数）？请提供示例并引用来源。

响应 2：谢谢你的建议。在第 2.4 节中，我们引入了制度理论，以详细解释制度复杂性的含义以及将制度复杂性作为阈值变量的基本原理。在第 3.3.4 小节中，我们进一步阐述了从东道国的角度衡量制度复杂性的方法，并提供了相关参考资料、示例和引用来源。

 

评论 3：全球背景下的贡献框架：虽然中国的关注点是明确和合理的，但手稿可以从更有力地阐明其全球相关性中受益。这些发现如何推广到其他新兴市场或为国际 ESG 实践和政策提供信息？

回应 3：感谢您的评论。首先，在第3.1节（第504-524行）中，我们增加了选择中国A股上市公司作为样本的原因及其研究结果的普遍性。其次，在第 7 小节（第 1039-1045 行）中，我们添加了关于将我们的研究结论推广到其他市场和经济体的警告，强调需要仔细考虑潜在差异并进行进一步的实证检验。

 

评论 4：改进引文风格和语言使用：目前在正文中引用参考文献的方式存在问题，应按照标准出版物格式进行修改。考虑修改这些内容以获得更好的流程。首次提及时，应完整介绍 BHAR（第 312 行）和 CAR（第 328 行）等首字母缩略词。手稿还将受益于一般校对，以纠正次要的语法和措辞问题（例如，第 51-53 行）。

响应 4： 对于引用样式和语言的使用，我们深表歉意。正文参考文献中的引用错误已得到纠正。此外，当 BHAR （Buy-and-Hold Abnormal Return） 和 CAR （Cumulative Abnormal Return） 首次被提及时（Line546,554），我们添加了对相关概念的解释。最后，我们纠正了整篇文章中的语法和措辞问题。

 

评论 5：阐明机制分析结果：在第 5.2 节中，作者声称所有列出的变量都具有正中介效应，包括 Capital Market Resource。但是，表 7 显示了此路径的负系数。请验证并协调这种差异，如果否定方向正确，请提供简短的解释。

响应 5： 谢谢你指出这一点。在这项研究中，我们发现收购方的 ESG 绩效、资本市场资源与跨境并购的长期绩效之间存在正相关关系。然而，用于衡量资本市场资源的 FC 指数与获得的资源量成反比，这意味着较小的 FC 指数表明获得资本市场资源的机会更大。因此，此特定路径表现出负相关。我们在 Section3.3.2（第 665-678 行）中对此进行了简要说明。

Reviewer 2 Report

Comments and Suggestions for Authors

The manuscript entitled " The Impact of ESG Performance of Acquirer on the Long-term 2 Performance of Cross-border mergers and acquisitions of A- 3 share Listed Companies: An Analysis Based on Two-way Fixed 4 Effect and Threshold Effect” is giving an analysis of environmental, social, and governance(ESG) for sustainable development in enterprises in China in order to shape responsible international image. This manuscript provides a study for Chinese share-listed companies from 2010 to 2023 by applying a proper method to reach its conclusion. The manuscript provides well organised structure for this topic, genuine attempt to understand surrounding factors that may play role effect ESG, well-written, and obvious presentation with a clear connection through the whole work. However, there are minor points to consider in the review of the manuscript as follows:

• In line no. 23, Keywords should include something refer to China enterprises, as the focus of this manuscript is all about China.
• In lines no. 29, and 32, references are “12” & “36”, which reflect no sequence in the reference numbers.
• In lines no. 36 to 38, this statement reflects statistical information, although it is provided without citation about the present situation.
• In lines no. 43 to 48, it is a very long statement which should be split into two or three sentences to maintain the clarity of the language.
• In line no. 50, it may be better to give an explanation about “lack of legitimacy and asymmetric information” that is provided in this sentence. This is because it is not clear how lack of legitimacy and asymmetric information would be challenges in the first place.
• In line no. 104, it says “which can provide a brand-new research incision for the study of cross-border M&A results”. This may need to show more justification here in order to explain how would be this paper provide “a brand-new” research incision.
• In lines no. 126 to 135 There is no citation to these inferences that require a to clarify how authors may reach these conclusion.
• In lines no. 136 to 156, this paragraph includes multiple assumptions about the host country market and consumers without any citation to the situation of consumers, for example. Also, using “may” and “might” to provide the assumption needs to provide examples from other market rather than Chinese perspective.
• In line no. 162, how this manuscript may prove the effectiveness.
• In lines no. 164 to 188, this long paragraph includes assumptions, information, inferences without any citation. This needs to be reviewed to consider references as these information is not facts.
• In lines no. 209 to 233, although the analytical perspective of the authors is strongly made, the lack of citation is clear through these points that the authors made.
• In lines no. 244 to 262, again, the analysis is lack of references.
• In lines no. 284 to 294, again, the analysis is lack of references.
• In line no. 541 , it says that “from 2010 to 2022”; however, in line no. 305, it says that “from 2010 to 2023”, which needs to be certain.
• In lines no. 587 to 591, this manuscript may provide more details about the proposal of the role of government to impose obligations in their own jurisdictions in order to support the ESG, and not only relying on the optional role of the enterprises.

Comments for author File: Comments.docx

Author Response

Comment: In line no. 23, Keywords should include something refer to China enterprises, as the focus of this manuscript is all about China.

In lines no. 29, and 32, references are “12” & “36”, which reflect no sequence in the reference numbers.

In lines no. 36 to 38, this statement reflects statistical information, although it is provided without citation about the present situation.

In lines no. 43 to 48, it is a very long statement which should be split into two or three sentences to maintain the clarity of the language.

In line no. 50, it may be better to give an explanation about “lack of legitimacy and asymmetric information” that is provided in this sentence. This is because it is not clear how lack of legitimacy and asymmetric information would be challenges in the first place.

In line no. 104, it says “which can provide a brand-new research incision for the study of cross-border M&A results”. This may need to show more justification here in order to explain how would be this paper provide “a brand-new” research incision.

In lines no. 126 to 135 There is no citation to these inferences that require a to clarify how authors may reach these conclusion.

In lines no. 136 to 156, this paragraph includes multiple assumptions about the host country market and consumers without any citation to the situation of consumers, for example. Also, using “may” and “might” to provide the assumption needs to provide examples from other market rather than Chinese perspective.

In line no. 162, how this manuscript may prove the effectiveness.

In lines no. 164 to 188, this long paragraph includes assumptions, information, inferences without any citation. This needs to be reviewed to consider references as these information is not facts.

In lines no. 209 to 233, although the analytical perspective of the authors is strongly made, the lack of citation is clear through these points that the authors made.

In lines no. 244 to 262, again, the analysis is lack of references.

In lines no. 284 to 294, again, the analysis is lack of references.

In line no. 541 , it says that “from 2010 to 2022”; however, in line no. 305, it says that “from 2010 to 2023”, which needs to be certain.

In lines no. 587 to 591, this manuscript may provide more details about the proposal of the role of government to impose obligations in their own jurisdictions in order to support the ESG, and not only relying on the optional role of the enterprises.

 

Response: We sincerely apologize for the numerous small issues in the article that went unnoticed.

In lines 27 to 29, we have added 'Chinese A-share listed companies' as keywords.

Regarding the issue of citation numbering in the main text, we have reviewed the entire article and made corrections.

In lines 42 to 44, we have added data for 2025 to make the article more timely and continuous.

For the long declarative sentences in the article, we divided them into 2-3 shorter sentences.

In lines 57 to 62, we have briefly explained 'lack of legitimacy and information asymmetry,' and further explained their meaning in detail in sections 2.1.1 and 2.1.2.

在第 161 行到第 182 行，我们增加了这项研究对现有研究和理论的潜在贡献和价值。

关于文中缺少引文和参考文献的问题，我们重新审视了理论分析部分，增加了引文和参考文献，从而在逻辑上和证据上得出了我们的结论。

我们已经更正了有关研究样本年份的错误。它是从 2010 年到 2021 年。

在第 6.2 节“建议”中，我们提出了来自企业、行业和政府三个层面的更全面的建议。

Reviewer 3 Report

Comments and Suggestions for Authors

The paper makes a worthwhile academic contribution to knowledge on how Environmental, Social, and Governance (ESG) performance affects the long-run performance of cross-border mergers and acquisitions, with a specific application to the Chinese setting. Multiple models of analysis, credible sources of information, and the introduction of mediating factors offer enhanced theoretical as well as practical insight into relations that have been researched. However, the research can be further improved by an elaboration of some methodological concerns, including a better definition and operationalization of ESG, a more coherent theoretical framework, and suggestions for future research to fill current gaps. These would add greatly to the scientific value and practical use of the research.

Introduction

No transition is found between recent statistical data in the introduction section. The paper suddenly shifts from recent statistical data to institutional theory to CSR literature without transitional words or sentence link between them. The final paragraph also strays from discussion of global sustainability problems to the Chinese internationalization setting once again, which could confuse readers with regard to the precise topic of the paper.

Recommendation:

Rearrange the introduction to follow an orderly process starting with contextual background, then institutional challenges, followed by a definition of what ESG is, and concluding with critical literature review and research gap.

 

Literature Review and Theoretical Framework

1- Though the paper presents the Outsider Disadvantage Theory, it does nothing to provide an underlying definitive and substantial theoretical justification of this model in the paper body. The theory is neither explicitly connected with hypothesis development/analysis in the paper.

Recommendation:

Add an additional section that clearly presents the theory that is invoked, defines its application in ESG and cross-border M&A, and shows its direct linkage with variables used

 

2- Furthermore, “Institutional Theory “and “Outsider Disadvantage Theory” are presented within the introduction and literature review without an explanation of whether the study is taking a dual-theoretical stance or only referencing them individually. Conceptually, this is confusing.

Recommendation: Indicate clearly if the work is adopting an integrated theory approach or assigning primacy to one theory with subordination of the other in application. The integration of theories should be clearly described.

 

3- No clear-cut definition of ESG has been given in the paper as an overall concept. There is no definition of ESG in this research along with an example of calculation.

Recommendation:

Present a concise, professionally accepted definition of ESG with proper references to current authoritative resources. Define the components of E, S, G, its measurement, and its justification.

 

4- The literature review is insufficiently critical. It provides an overview of most of the research available without indicating points of convergence with or departure from the current research or specifying the research gap explicitly.

Recommendation:

Offer a stronger literature review that shows the way that past research substantiates or contradicts this research and clearly describes in detail the specific gap it is designed to fill.

Research Design

1- No explanation is provided for why only firms listed on Stock Exchange "A" are chosen. The relevance of the results to other Chinese markets and to newly industrialized economies in general is not known.

Recommendation:

Clearly state the sample selection and explain it in terms of research goals and overall generalizability of the findings.

 

2- The manuscript is deficient in using a conceptual or pathway model to illustrate dependent, independent, mediating, and control variable relationships, reducing the analytic design's transparency.

Recommendation:

Offer an analogous visual conceptual model to facilitate easier interpretation and guide readers through predicted relationships.

 

Results

Although the results clearly show an overwhelmingly positive impact of ESG on later post-acquisition performance, the discussion does little to make strong links to the conceptual theory (Outsider Disadvantage or Institutional Theory). The interpretation remains statistical in style without integration of theoretic implications.

Recommendation:

Discuss the results in terms of the theoretical model with an indication of where findings contrast with or complement current research and theory.

 

Conclusions and Policy Proposals

1- The policy recommendations are neither supported by citations nor by empirical studies. The transition between firm-level and government-level recommendations is neither systematic nor grouped.

Recommendation: Support policy proposals with citations from contemporary research or empirical data. Frame recommendations logically in an order such as firm-level, industry-level, policy-level.

 

2- It omits any discussion of future research avenues, albeit these are essential in broadening the scholarly contribution of the research.

Recommendation:

Add one brief paragraph setting out potential avenues for future research, such as investigating ESG impacts by sector on the basis of causal modelling techniques or extending the sample geographically as well as sectorally.

Author Response

Introduction

 

Comment : No transition is found between recent statistical data in the introduction section. The paper suddenly shifts from recent statistical data to institutional theory to CSR literature without transitional words or sentence link between them. The final paragraph also strays from discussion of global sustainability problems to the Chinese internationalization setting once again, which could confuse readers with regard to the precise topic of the paper.

Recommendation: Rearrange the introduction to follow an orderly process starting with contextual background, then institutional challenges, followed by a definition of what ESG is, and concluding with critical literature review and research gap.

Response: Thank you for your advice. In the recent statistics section, we have added 2025 data as a transition(Line42-44). Furthermore, we reorganized the logic of the Introduction based on your suggestion to enhance its coherence. It now starts with the background, followed by the challenges of the liability of foreignness, then the definition of ESG and its role in internationalization, and finally, a critical literature review and identification of research gaps.

 

Literature Review and Theoretical Framework

 

Comment 1 :Though the paper presents the Outsider Disadvantage Theory, it does nothing to provide an underlying definitive and substantial theoretical justification of this model in the paper body. The theory is neither explicitly connected with hypothesis development/analysis in the paper.

Recommendation 1: Add an additional section that clearly presents the theory that is invoked, defines its application in ESG and cross-border M&A, and shows its direct linkage with variables used

Response1: Thank you for your suggestion. We have added Section 2.1, which provides a detailed explanation of the liability of foreignness theory and its application in cross-border mergers and acquisitions. This section is further divided into two parts: lack of legitimacy and information asymmetry(Subsection2.1.1and 2.1.2). Additionally, we have included Section 2.2, which elaborates on how the acquirer's ESG performance can mitigate the liability of foreignness in cross-border M&As. Regarding the issue of a lack of a clear connection between the liability of foreignness theory and the hypotheses and analysis in the paper, we have addressed these in the theoretical analysis sections (Sections 2.2/2.3/2.4) by explicitly integrating the liability of foreignness theory into the hypotheses and analysis.

 

 

Comment 2: Furthermore, “Institutional Theory “and “Outsider Disadvantage Theory” are presented within the introduction and literature review without an explanation of whether the study is taking a dual-theoretical stance or only referencing them individually. Conceptually, this is confusing.

Recommendation 2: Indicate clearly if the work is adopting an integrated theory approach or assigning primacy to one theory with subordination of the other in application. The integration of theories should be clearly described.

Response 2: We are sorry for not clearly stating the translation of the theory referenced in the article. This article's research is based on the liability of foreignness(LOF) theory. Institutional theory is only applied in the threshold analysis to introduce institutional complexity as a threshold variable(Line442-463). In the Section 1(Line186-161), we have clarified the main content of our research and the theoretical framework employed.

 

 

Comment 3：No clear-cut definition of ESG has been given in the paper as an overall concept. There is no definition of ESG in this research along with an example of calculation.

Recommendation 3: Present a concise, professionally accepted definition of ESG with proper references to current authoritative resources. Define the components of E, S, G, its measurement, and its justification.

Response 3: Thank you for your advice. Referring to relevant literature, we have cited the Sustainability Accounting Standards Board's (SASB) definition of ESG in the introduction(Line87-93). Furthermore, we have explained the relationship and roles of the various ESG dimensions(Line93-112).

 

Comment 4: The literature review is insufficiently critical. It provides an overview of most of the research available without indicating points of convergence with or departure from the current research or specifying the research gap explicitly.

Recommendation 4: Offer a stronger literature review that shows the way that past research substantiates or contradicts this research and clearly describes in detail the specific gap it is designed to fill.

Response 4: Thank you for your suggestion. In the Section1(Line123-157), we have added a review of relevant literature concerning the impact of acquirer ESG performance on cross-border M&As. We found that existing literature suggests ESG plays a positive role in the M&A process, providing partial support for this study, but does not extensively investigate its impact on long-term M&A performance. Therefore, this study aims to fill the research gap.

 

Research Design

Comment 1:  No explanation is provided for why only firms listed on Stock Exchange "A" are chosen. The relevance of the results to other Chinese markets and to newly industrialized economies in general is not known.

Recommendation1: Clearly state the sample selection and explain it in terms of research goals and overall generalizability of the findings.

Response 1: Thank you for your comment. We have explained in Section 3.1(Line501-524) the reasons for selecting Chinese A-share listed companies as the research sample, elaborated on the relevance of its results to other Chinese markets and emerging industrialized economies, and explained its overall universality.

 

 

Comment2： The manuscript is deficient in using a conceptual or pathway model to illustrate dependent, independent, mediating, and control variable relationships, reducing the analytic design's transparency.

Recommendation 2: Offer an analogous visual conceptual model to facilitate easier interpretation and guide readers through predicted relationships.

Response 2：Thanks for your advice. We have added an image illustrating the theoretical analysis framework of the article in Line 503, depicting the impact of the acquirer's ESG performance on the long-term performance of cross-border mergers and acquisitions, the mechanisms, and the threshold effect of the host country institutional complexity.

 

 

Results

Comment：Although the results clearly show an overwhelmingly positive impact of ESG on later post-acquisition performance, the discussion does little to make strong links to the conceptual theory (Outsider Disadvantage or Institutional Theory). The interpretation remains statistical in style without integration of theoretic implications.

Recommendation:：Discuss the results in terms of the theoretical model with an indication of where findings contrast with or complement current research and theory.

Response: Thank you for your advice. In Section 4(Line773-739,827-834,867-874), we have connected the baseline analysis research results, the mediating effect research results, the threshold effect research results, and the heterogeneity research results with the liability of foreignness theory for analysis, establishing a solid connection with the theoretical framework presented earlier. In lines 161 to 182, we have added the potential contributions and value of this research to existing research and theory.

 

Conclusions and Policy Proposals

Comment 1： The policy recommendations are neither supported by citations nor by empirical studies. The transition between firm-level and government-level recommendations is neither systematic nor grouped.

Recommendation 1: Support policy proposals with citations from contemporary research or empirical data. Frame recommendations logically in an order such as firm-level, industry-level, policy-level.

Response 1: Thanks for your suggestion. Drawing upon prior relevant research findings and the conclusions of this paper, we have proposed a series of recommendations spanning the corporate, industry, and governmental levels in Section 6.2.

 

 

评论 2：它省略了对未来研究途径的任何讨论，尽管这些途径对于扩大研究的学术贡献至关重要。

建议 2：增加一个简短的段落，列出未来研究的潜在途径，例如根据因果建模技术按行业调查 ESG 影响，或在地理和行业上扩展样本。

回应 2：谢谢你的建议。 我们增加了第 7 章，概述了未来研究的潜在途径。我们增加了对行业和地域维度的更精细分析，重点关注 ESG 的不同维度和并购整合过程，并探索 ESG 信息披露质量的影响。

Reviewer 4 Report

Comments and Suggestions for Authors

This manuscript presents a timely and relevant study on the impact of acquirer ESG performance on the long-term outcomes of cross-border M&As by Chinese A-share listed companies. The empirical design is robust, utilizing panel data and advanced methodologies. However, several critical issues require attention. 
1. Explicitly link each ESG dimension to specific LOF mechanisms (e.g., governance disclosures reducing information asymmetry for investors).
2. Disclose China Securities’ ESG sub-dimension weightings and add robustness checks with alternative databases (e.g., Wind ESG).
3. Extend BHAR windows to 24/36 months and supplement with ΔROA while implementing Fama-French risk adjustments.
4. Address endogeneity via Granger causality tests and dynamic panel GMM models with lagged ESG variables.
5. Reconcile the negative capital market resources coefficient by verifying FC index interpretation and adding case examples.
6. Incorporate cultural distance moderation to explain weak social  dimension effects and cite compensatory legitimacy theory for heavy polluters.
7. Correct formatting inconsistencies (e.g., Table 4 parentheses) and report exact p-values while defining all acronyms upfront. And correct the writing errors. 

Author Response

Comments 1: Explicitly link each ESG dimension to specific LOF mechanisms (e.g., governance disclosures reducing information asymmetry for investors).

Response 1： Thanks for your advice. We have linked each ESG dimension to specific LOF mechanisms in Subsection 2.2.1and 2.2.2(Line273-276,286-290,313-322)

 

Comments 2: Disclose China Securities’ ESG sub-dimension weightings and add robustness checks with alternative databases (e.g., Wind ESG).

Response 2：Tanks for your suggestion. We have disclosed Huazheng ESG sub-dimension weightings in Subsection 3.3.2. At the same time, we have used WindESG rating data as a proxy variable for corporate ESG performance to add robustness checks in Subsection 4.2.2.

 

Comments 3: Extend BHAR windows to 24/36 months and supplement with ΔROA while implementing Fama-French risk adjustments.

Response 3：Thanks for your advice. We have Extended BHAR windows to 24/36 months while implementing Fama-French risk adjustments in subsection 3.3.1. and we have added ΔROA as the independent variable and performed the regression again in Subsection 4.2.1.

 

Comments 4：Address endogeneity via Granger causality tests and dynamic panel GMM models with lagged ESG variables.

Response 4：Thanks for your comment. We have addressed endogeneity via Granger causality tests and dynamic panel GMM models with lagged ESG variables in Subsection 4.3.1 and 4.3.2.

 

Comment 5: Reconcile the negative capital market resources coefficient by verifying FC index interpretation and adding case examples.

Response 5：We have explained the meaning of FC index in Subsection 3.3.5(Line665-678), and explained by an example that the larger FC index, the more limited capital market resources can be obtained by enterprises. Therefore, in the subsequent analysis and interpretation of results, it is necessary to pay attention to the negative relationship between FC index and merger performance.

Comment 6: Incorporate cultural distance moderation to explain weak social dimension effects and cite compensatory legitimacy theory for heavy polluters.

Response 6：Thanks for your suggestion. In Subsection 5.3.1(Line889-914), we have used cultural distance adjustment to explain the weak social dimension effect. In addition, we also have collected relevant literature to explain the compensatory legitimacy theory, and used it to explain the higher sensitivity of ESG rating of heavily polluters to the long-term performance of cross-border mergers and acquisitions in Subsection5.3.2(Line930-948).

 

评论 7：更正格式不一致（例如，表 4 括号）并报告确切的 p 值，同时预先定义所有首字母缩略词。并纠正写入错误。

回应 7：对于格式不一致，我们深表歉意。我们在表 2,3,5-10 中标准化了表格格式并报告了 P 值，在第 3.3 节中定义了变量缩写并更正了写入错误。

 

Round 2

Reviewer 3 Report

Comments and Suggestions for Authors

Amendments are acceptable.

Author Response

审稿人 3#：

感谢您的评论。我们对文本中使用的一些非正式术语进行了轻微的修改（第 132-139 行）

Reviewer 4 Report

Comments and Suggestions for Authors

Authors have tried to addressed the problems in the initial version. It is seen that many problems are solved. Some minor problems are suggested to be focused on.

1. Maybe the  Policy Proposals can be rearranged before the conclusions for a separated part, which can be a deeper discussion.

2. The sources of some classic formulas should be cited and annotated. 

3. Future research should be condensed.

Author Response

Comment 1: Maybe the Policy Proposals can be rearranged before the conclusions for a separated part, which can be a deeper discussion.

Response 1: Thanks for your suggestion. We have divided the Policy Proposals and Conclusions into two chapters. We believe that the research conclusions should come first, enabling us to propose corresponding policy proposals based on them. Therefore, Chapter 6 is the Conclusion, and Chapter 7 contains the Policy Proposals. Additionally, the Policy Proposals are further divided into three sections, discussing them respectively from the perspectives of enterprises, industries, and government.

 

Comment 2: The sources of some classic formulas should be cited and annotated.

响应 2：对于没有引用一些经典公式的来源，我们深表歉意。在此修订版中，我们引用了公式的来源（Lines580,589,648,666）。

 

评论 3： 未来的研究应该被浓缩。

响应 3：谢谢你的建议。我们浓缩了未来研究（Lines1040-1063）