The Impact of Mergers and Acquisitions on Corporate Stakeholder Practices

Publisher: GSE Research

E-ISSN: 2051-4700|2006|22|91-109

ISSN: 1470-5001

Source: The Journal of Corporate Citizenship, Vol.2006, Iss.22, 2006-06, pp. : 91-109

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Abstract

One of the intriguing unanswered research questions is what is the impact of mergers and acquisitions (MA) on corporate responsibility This study examines that question empirically. In pre-merger firms, few statistically significant stakeholderrelated performance differences exist between the acquirer and target; acquirers show more strengths in the diversity category and more concerns related to products. For pre- and post-merger target and merged firms, the data show more strengths and concerns related to specific stakeholders for the merged firm compared with the pre-merger target, which seemed to lose some more innovative practices. Similarly, there is a fairly consistent pattern showing both more stakeholder-related strengths and concerns in merged compared with pre-merger acquiring firms.