The Impact of Mergers and Acquisitions on Shared Value Creation: Evidence From Chinese Firms

ABSTRACT This study empirically investigates whether and how mergers and acquisitions (M&As) facilitate shared value creation. Using a sample of Chinese A‐share listed enterprises from 2008 to 2023, we construct a novel shared value creation indicator that integrates ESG performance and return on assets within a two‐dimensional evaluation framework. Employing multiple measures of M&A activity, we find robust evidence that M&As significantly enhance shared value creation. Mechanism analyses reveal that M&As promote shared value creation through three key channels: stimulating new product development, improving production efficiency, and strengthening cluster‐level collaboration. Further heterogeneity analyses show that the positive effects of M&As on shared value creation are more pronounced in firms operating in less competitive market environments, firms with stronger stakeholder engagement, and firms with weaker dynamic capabilities. This study contributes to sustainable strategic management literature by demonstrating M&As' role in balancing shareholder and stakeholder interests, offering practical insights for firms to leverage M&As for shared value creation through innovation‐driven strategies, operational synergies, and cluster engagement.