How does corporate social responsibility affect merger and acquisition performance?

This study aims to demonstrate that fulfilling corporate social responsibility (CSR) is an inevitable requirement for sustainable development. Based on stakeholder theory, this study constructs a moderated mediation model between CSR and merger and acquisition (M&A) performance. The results of 990 M&A cases involving Chinese enterprises show that: CSR can enhance M&A performance; goodwill has a mediating effect between CSR and M&A performance; economic policy uncertainty strengthens the negative effect of goodwill on M&A performance; economic policy uncertainty moderates the mediating effect of goodwill between CSR and M&A performance; and the mechanism of the effect of CSR and M&A performance shows property rights and industry heterogeneity. This study helps to avoid short-sighted M&A behavior and guides capital inflows toward more socially responsible enterprises, thereby promoting the transformation of business models toward sustainable development. This study not only verifies the positive relationship between CSR and M&A performance but also discovers the existence of a mediated mediation mechanism between the two.