Understanding Targets' Corporate Social Performance From the Acquirer's Perspective—Based on Foreign Entries Into the American Market

ABSTRACT Through the lenses of the resource‐based view (RBV) and signaling theory, this study investigates the link between corporate social performance (CSP) and acquisition premiums in cross‐border M&As, with a focus on the signaling role of CSP. The results confirm that targets' CSP serves as a value‐conveying signal that can shape acquirers' pricing decisions and informational landscape. Specifically, superior overall CSP corresponds to higher premiums; CSP concerns to discounts; and CSP strengths to no significant effect. Meanwhile, CSP signals help acquirers navigate both culture‐ and firm‐level information asymmetries, with the effectiveness of this signaling contingent on the type and magnitude of informational barriers.