CSR and Stock Performance In Merger and Acquisitions (M&A) Context

Zahratul Aini, Ratna Wardhani

Abstract


This study examines the effect of Corporate Social Responsibility (CSR) on short- and long-term stock performance of companies undergoing mergers and acquisitions (M&A) in Southeast Asia. The methode used an event study approach, it analyzes market reactions to M&A announcements. Short-term performance is measured by Cumulative Abnormal Return (CAR), while long-term performance uses Buy and Hold Abnormal Return (BHAR). The sample consists of 240 M&A transactions from 2017 to 2023. Results show that CSR has a significant negative effect on short-term performance (CAR) only in event window model 3.1.2, with no significant impact in other windows. For long-term performance, CSR negatively affects BHAR in models 3.2.2 and 3.2.3, but not in others. Overall, this finding indicates that the market does not respond positively to CSR in the context of M&A, even assessing CSR as a burden or activity that does not directly increase the long-term value of the company.


Keywords


CSR; Stock Performance; M&A; Southeast Asia

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References


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DOI: https://doi.org/10.17509/jrak.v14i1.94282

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