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Strategic merger decisions under environmental corporate social responsibility

Author

Listed:
  • Sumi Cho

    (Chonnam National University)

  • Sang-Ho Lee

    (Chonnam National University)

Abstract

This study investigates merger decisions in a green managerial delegation contract with differentiated products and convex production cost, wherein competing multi-product firms can commit to environmental corporate social responsibility (ECSR). We find that ECSR can induce a profitable merger, which may also improve welfare if the production cost efficiency parameter is low and product substitutability is high.

Suggested Citation

  • Sumi Cho & Sang-Ho Lee, 2025. "Strategic merger decisions under environmental corporate social responsibility," Economics Bulletin, AccessEcon, vol. 45(3), pages 1397-1405.
    • Handle: RePEc:ebl:ecbull:eb-25-00159
    as

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    References listed on IDEAS

    as
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    2. Garcia, Arturo & Leal, Mariel & Lee, Sang-Ho & Park, Chul-Hi, 2024. "Merger incentive and strategic corporate social responsibility by a multiproduct corporation," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 193-206.
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    11. Lee Sang-Ho & Park Chul-Hi, 2019. "Eco-Firms and the Sequential Adoption of Environmental Corporate Social Responsibility in the Managerial Delegation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(1), pages 1-9, January.
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    20. Bárcena-Ruiz, Juan Carlos & Garzón, María Begoña & Sagasta, Amagoia, 2023. "Environmental corporate social responsibility, R&D and disclosure of “green” innovation knowledge," Energy Economics, Elsevier, vol. 120(C).
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    Keywords

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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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