How media coverage of corporate social responsibility and irresponsibility influences cross‐border acquisitions

Strategic Management Journal 2020 Forthcoming https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.3212

Posted: 18 Jan 2014 Last revised: 12 Nov 2020

See all articles by Olga Hawn

Olga Hawn

UNC Kenan-Flagler Business School

Date Written: Nov 11, 2020

Abstract

This study contributes to the growing strategic corporate social responsibility (CSR) literature by examining the intersection of acquisition studies and international expansion research and highlighting the unexplored impact of media coverage of CSR and corporate social irresponsibility (CSI) in shaping completion and duration outcomes of cross‐border acquisitions. A quantitative analysis of 4,087 cross‐border acquisition announcements by firms from Brazil, Russia, India, China, and South Africa (1990–2011) shows that while media coverage of CSR is not important, media coverage of CSI is associated with lower likelihood of and longer duration till acquisition completion. By theoretically and empirically distinguishing media coverage of CSR from CSI, this paper pushes the existing literature to acknowledge these distinct concepts and their varying effects. In sum, managers should beware media coverage of CSI when acquiring abroad.

Keywords: corporate social responsibility (CSR), international expansion, emerging market multinationals (EMMs), M&As, public takeover process, media coverage, corporate social irresponsibility

Suggested Citation

Hawn, Olga, How media coverage of corporate social responsibility and irresponsibility influences cross‐border acquisitions (Nov 11, 2020). Strategic Management Journal 2020 Forthcoming https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.3212, Available at SSRN: https://ssrn.com/abstract=2380632 or http://dx.doi.org/10.2139/ssrn.2380632

Olga Hawn (Contact Author)

UNC Kenan-Flagler Business School ( email )

Chapel Hill, NC 27599
United States

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