Abstract
The purpose of this study is to investigate the impact of corporate social responsibility of Chinese state-owned enterprises on their acquirer value. We found that the corporate social responsibility performance and corporate social responsibility practices of the acquired state-owned enterprises significantly improved the value of the acquired enterprises. In addition, especially when the acquired party engages in sustainable development projects, the positive valuation effect of corporate social responsibility is more pronounced. However, for the types of state-owned enterprises, local state-owned enterprises are more suitable for the above results. Our evidence is reliable for multiple sensitivity tests. Consistent with the stakeholder theory of maximizing stakeholder value, investing in corporate social responsibility can create value in M&A transactions.