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Strategic corporate social responsibility and partial privatization policy with foreign penetration

Author

Listed:
  • Lili Xu

    (Dalian Maritime University)

  • Fanrui Su

    (Dalian Maritime University)

  • Sang-Ho Lee

    (Chonnam National University)

Abstract

This study considers strategic relations between corporate social responsibility (CSR) and privatization policy in a mixed duopoly. We investigate the impact of the order of sequential games and compare with simultaneous game to highlight the significant role of the foreign shareholding ratio of the CSR-firm. We show that the privatization-then-CSR case yields a lower (higher) degree of privatization while a higher (lower) level of CSR than the CSR-then-privatization case when foreign penetration is low (high). We also show that privatization-then-CSR case can be a unique equilibrium in an endogenous timing game, while it is socially desirable when foreign penetration is neither sufficiently low nor high.

Suggested Citation

  • Lili Xu & Fanrui Su & Sang-Ho Lee, 2023. "Strategic corporate social responsibility and partial privatization policy with foreign penetration," The Japanese Economic Review, Springer, vol. 74(2), pages 251-278, April.
    • Handle: RePEc:spr:jecrev:v:74:y:2023:i:2:d:10.1007_s42973-021-00075-x
    DOI: 10.1007/s42973-021-00075-x
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    References listed on IDEAS

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    More about this item

    Keywords

    Strategic CSR; Partial privatization; Foreign penetration; Mixed market;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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