Strategic corporate social responsibility and partial privatization policy with foreign penetration

Lili Xu (), Fanrui Su () and Sang-Ho Lee ()
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Lili Xu: Dalian Maritime University
Fanrui Su: Dalian Maritime University

The Japanese Economic Review, 2023, vol. 74, issue 2, No 3, 278 pages

Abstract: 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.

Keywords: Strategic CSR; Partial privatization; Foreign penetration; Mixed market (search for similar items in EconPapers)
JEL-codes: F23 H42 L33 M14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s42973-021-00075-x

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