Does a firm have to be socially responsible to become a target in cross-border M&As: evidence from China

Based on data from Chinese-listed firms from 2008 to 2016, we explore the impact of corporate social responsibility (CSR) on the likelihood of becoming a target in cross-border mergers and acquisitions (M&As). We find that CSR performance is positively associated with the firm's likelihood of becoming a target in cross-border M&As, but this effect is significant only in higher competitive markets and for non-state-owned enterprises. Moreover, only high-quality CSR disclosure can improve the likelihood of becoming a M&A target. Therefore, the governments in emerging markets should guide listed companies to disclose high-quality CSR reports and propel the process of marketization.