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Corporate social responsibility and partial privatisation of state holding corporations

Author

Listed:
  • Quan Dong

    (South China Normal University)

  • Juan Carlos Bárcena-Ruiz

    (Universidad del País Vasco UPV/EHU)

Abstract

We consider a state holding corporation with two plants that may produce heterogeneous goods. The public sector competes with a private sector that may be composed of uniplant firms or a multiplant firm. Private firms care about corporate social responsibility (CSR). We find that the stake held by the government in the state corporation depends on several factors: the degree to which private firms are concerned with CSR, whether private firms are uniplant or multiplant and whether goods are substitutes, complements or independent in demand. Depending on those factors, the state corporation may be partially privatised or remain fully public. The same factors also affects social welfare and thus the organisational structure of private firms by the government.

Suggested Citation

  • Quan Dong & Juan Carlos Bárcena-Ruiz, 2021. "Corporate social responsibility and partial privatisation of state holding corporations," Journal of Economics, Springer, vol. 132(3), pages 223-250, April.
    • Handle: RePEc:kap:jeczfn:v:132:y:2021:i:3:d:10.1007_s00712-020-00725-5
    DOI: 10.1007/s00712-020-00725-5
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    References listed on IDEAS

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    Cited by:

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    3. Bárcena-Ruiz, Juan Carlos & Sagasta, Amagoia, 2021. "Environmental policies with consumer-friendly firms and cross-ownership," Economic Modelling, Elsevier, vol. 103(C).

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    More about this item

    Keywords

    Partial privatisation; State holding corporation; Corporate social responsibility; Multiproduct firms; Oligopoly;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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