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Date of Graduation
8-15-2025
Semester of Graduation
Summer
Degree Name
Doctor of Philosophy (PhD)
Department
School of Strategic Leadership Studies
First Advisor
Adam J. Vanhove
Second Advisor
Margaret F. Sloan
Third Advisor
Ben S. Selznick
Abstract
Firm stakeholders are persuading firm leadership to make investment decisions that benefit the environment and the social community around them. Firm leaders are also investing in merger and acquisition (M&A) growth strategies to improve profitability, although these strategies have a substantial risk of failure. Through the resource dependency theory lens, this study explored balancing the investment of resources in corporate social responsibility (CSR) to increase corporate financial performance (CFP) in firms with high M&A growth strategies. This study also examined the moderating effect of board leadership characteristics, specifically gender and ethnic minority board diversity, on the relationship between CSR and CFP for M&A growth firms. Using 4,707 time-lagged firm-year observations from 2008 to 2019, fixed-effects regression modeling was employed to test the hypothesized inverted U-shaped curvilinear relationship between CSR and CFP among M&A growth firms, as well as the moderating effects of board leader gender and ethnic minority diversity. The findings did not support the hypothesized inverted U-shaped curvilinear relationship between CSR and CFP, nor the moderating effect of board diversity on that relationship, with one exception. Findings did support a positive, linear CSR-CFP relationship when using a market-based CFP measure (Tobin’s Q) but not accounting-based CFP measures (return on assets and goodwill impairment). Findings also supported positive, linear relationships between board diversity and CFP, which was more consistently observed for board gender diversity than board ethnic minority diversity. Post-hoc analyses explored the moderating effects of firm assets on the CSR-CFP and board diversity-CFP relationships, with only limited support for these additional moderating effects. Study implications highlight the importance for leaders in considering the value leaders place on CSR and how well their CSR investments align with their M&A strategies and broader strategic goals. Similarly, findings highlight the importance of board leaders selecting board members based on the resources they bring to support CSR investments effectively.
