Emerging Market Multinationals' Cross-border Acquisitions and Corporate Social Performance

Emerging market multinational corporations (EMNCs) have conducted a series of cross-border acquisitions (CBAs) to expediently expand their business landscape and catch up with established multinationals. The developed markets become great destinations for EMNCs’ acquisitions to benefit from the more advanced technology and managerial know-how as well as brands and distribution channels established by the developed market targets. An institution-based view on EMNCs’ foreign expansion suggests that facing large institutional distance, EMNCs need to carefully navigate the institutional environment in the target developed market and attain needed legitimacy to operate successfully in the developed market. The current study provides one of the first research endeavors to investigate how EMNCs’ CBA in a developed market may require their compliance with the established standard of corporate social responsible practices in the host market and subsequently improve their corporate social performance in their home ...