Strategic merger decisions under environmental corporate social responsibility

Sumi Cho () and Sang-Ho Lee ()
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Sumi Cho: Chonnam National University

Economics Bulletin, 2025, vol. 45, issue 3, 1397 - 1405

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.

Keywords: Environmental corporate social responsibility; Merger decisions; Multi-product firm (search for similar items in EconPapers)
JEL-codes: L1 Q5 (search for similar items in EconPapers)
Date: 2025-09-30
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