Policy uncertainty, social responsibility and corporate M&A

Abstract

Purpose This paper aims to focus on corporate social responsibility in relation to economic policy uncertainty in mergers and acquisitions (M&A). The following questions are addressed: How does policy uncertainty impact corporate M&A? Does social responsibility play a mediating role in this process? How does policy uncertainty affect corporate M&A through social responsibility? Design/methodology/approach This paper selects the major M&A events in China as the research object, and uses the Probit model to analyze the impact of policy uncertainty on M&A behavior and the business performance after the event, and further analyzes the internal mechanisms that cause these phenomena. Findings This paper shows that the higher the policy uncertainty, the lower the probability of a successful M&A, and the worse the business performance of the business after the event. Originality/value This paper provides useful reference for the study of M&A and social responsibility in different policy environments. At the same time, it provides direct empirical evidence to enhance the success rate of M&A.

Analysis of the Impact of Economic Policy Uncertainty on Environmental Sustainability in Developed and Developing Economies

“…Uncertainty is one of the main barriers to investments in low-carbon technology, delaying the shift to a low-carbon economy [17]. Li et al [51] demonstrate the relationship between policy uncertainty, the likelihood of successful mergers and acquisitions, and the subsequent company performance. Overall, the body of research indicates that policy uncertainty can obstruct efforts to combat climate change by delaying investments in lowcarbon technology, raising the societal cost of carbon, and escalating the adverse effects of climate change.…”