Innovate or merge? The role of corporate social responsibility in the relationship between RD and mergers and acquisitions

摘要

In this research, we study how recent developments in corporate social responsibility (CSR) impacts the relationship between R&D investment and mergers and acquisitions (M&A). We find that CSR scores positively moderate the relationship. For firms with high CSR scores, higher R&D investment intensity is associated with a higher likelihood of M&A, but for firms with sufficiently low CSR scores, higher R&D intensity is associated with a lower likelihood of M&A. This finding suggests that CSR may create an insurance-like buffer that mitigates risks, and may improve knowledge sharing and absorption capabilities that ease the integration process during M&A.