Government intervention and M&A performance: From the perspective of
target corporate social responsibility overinvestment
Abstract
Based on a sample of cross-border mergers and acquisitions (M&As) of
Chinese enterprises in different target countries between 2000 and 2021,
this paper explores the impact of target corporate social responsibility
overinvestment on M&A performance and the moderating effect on the
above impact of Chinese government’s two forms of interventions in the
process of corporates financing and operating. The results show that
target corporate social responsibility overinvestment has a negative
effect on M&A performance. Moreover, government interventions in
corporates’ financing and operating process negatively moderate the
relationship between target corporate social responsibility
overinvestment and M&A performance. This research helps government to
take different forms of interventions to motivate enterprises to
participate in social responsibility and improve performance.