Publication:
Is Better Information Always Good News? International Corporate Strategy and Regulation

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dc.contributor.authorKitzmuller, Markus
dc.date.accessioned2013-01-04T18:54:55Z
dc.date.available2013-01-04T18:54:55Z
dc.date.issued2012-10
dc.description.abstractThis paper develops a simple model to analyze the interaction between strategic corporate public good provision, international firm location and national regulation. An information-based strategic corporate public good provision mechanism is proposed to shed light on recent firm behavior within different regulatory environments. The main insight derived is that in the presence of firms with geographic flexibility (multinational enterprises) and market provision of an international public credence good, unilateral (non-cooperative) regulatory scope depends on (1) the absolute probabilities to verify firms' corporate public good provision levels within different geographic and institutional environments, and (2) the differential between these probabilities across countries. The relative information asymmetry determines not only the market levels of the public good produced under autarky, but also the relocation incentives of multinational enterprises. A firm trades off lower production costs, which increase its competitiveness in pricing, with higher expected informational price premiums, which decrease its competitiveness. A government's ability to regulate above market (corporate public good provision) levels decreases with the absolute level of foreign transparency, while it increases in the relative (positive) difference between the same transparency at home and abroad. This may not only explain mixed empirical evidence of theoretic propositions such as the Pollution Haven Hypothesis and Regulatory Race to the Bottom dynamics, but also open up interesting policy implications as the international information playing field becomes leveled through development, while existing regulations are rather rigid, and policy coordination remains limited.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/10/16873350/better-information-always-good-news-international-corporate-strategy-regulation
dc.identifier.doi10.1596/1813-9450-6251
dc.identifier.urihttps://hdl.handle.net/10986/12092
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 6251
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO INFORMATION
dc.subjectACCOUNTING
dc.subjectADVERSE EFFECTS
dc.subjectADVERTISING
dc.subjectARBITRAGE
dc.subjectBANK POLICY
dc.subjectBARGAINING
dc.subjectBARGAINING POWER
dc.subjectBERTRAND COMPETITION
dc.subjectBINDING CONSTRAINT
dc.subjectBOND
dc.subjectBRAND
dc.subjectCHILD LABOR
dc.subjectCLEAN TECHNOLOGY
dc.subjectCOMMERCE
dc.subjectCOMMITMENT DEVICE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVE ADVANTAGES
dc.subjectCOMPETITIVE PRICES
dc.subjectCOMPETITIVENESS
dc.subjectCONSUMER EXPECTATIONS
dc.subjectCONSUMER PREFERENCES
dc.subjectCONSUMERS
dc.subjectCONTRACTUAL OBLIGATION
dc.subjectCOORDINATION FAILURE
dc.subjectCORPORATE TAXES
dc.subjectCREDIBILITY
dc.subjectDERIVATIVE
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT POLICY
dc.subjectDISCLOSURE OF INFORMATION
dc.subjectDISPLACEMENT
dc.subjectDRIVERS
dc.subjectDUMPING
dc.subjectECOLOGICAL ECONOMICS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC BEHAVIOR
dc.subjectECONOMIC COMPETITION
dc.subjectECONOMIC INTEGRATION
dc.subjectECONOMIC MOTIVATION
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectECONOMISTS
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKET ECONOMY
dc.subjectEMERGING MARKETS
dc.subjectEMISSIONS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPLOYMENT
dc.subjectENVIRONMENTAL
dc.subjectENVIRONMENTAL ECONOMICS
dc.subjectENVIRONMENTAL IMPACTS
dc.subjectENVIRONMENTAL KUZNETS
dc.subjectENVIRONMENTAL MANAGEMENT
dc.subjectENVIRONMENTAL PERFORMANCE
dc.subjectENVIRONMENTAL POLICY
dc.subjectENVIRONMENTAL PROTECTION
dc.subjectENVIRONMENTAL QUALITY
dc.subjectENVIRONMENTAL REGULATIONS
dc.subjectENVIRONMENTS
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM PRICES
dc.subjectEXPENDITURES
dc.subjectEXPLOITATION
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectEXTERNALITY
dc.subjectFAIR
dc.subjectFAIR TRADE
dc.subjectFINANCIAL MARKETS
dc.subjectFIRM PERFORMANCE
dc.subjectFIXED COSTS
dc.subjectFLOW OF INFORMATION
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFREE TRADE
dc.subjectGDP
dc.subjectGLOBALIZATION
dc.subjectHOLDING
dc.subjectHORIZONTAL INTEGRATION
dc.subjectIMPERFECT INFORMATION
dc.subjectINCENTIVE COMPATIBILITY CONSTRAINT
dc.subjectINCOME EFFECTS
dc.subjectINCOME LEVELS
dc.subjectINDUSTRIALIZATION
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFORMATION ASYMMETRY
dc.subjectINFORMATION DISCLOSURE
dc.subjectINNOVATION
dc.subjectINSTRUMENT
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL STANDARDS
dc.subjectINTERNATIONAL TRADE
dc.subjectLABOR FORCE
dc.subjectLABOR ORGANIZATION
dc.subjectLABOR STANDARD
dc.subjectLABOR STANDARDS
dc.subjectLEGAL TOOLS
dc.subjectLIABILITY
dc.subjectLOCAL MARKETS
dc.subjectLYON
dc.subjectMARGINAL COST
dc.subjectMARGINAL COSTS
dc.subjectMARKET ECONOMIES
dc.subjectMARKET ECONOMY
dc.subjectMARKET FAILURE
dc.subjectMARKET FORCES
dc.subjectMARKET LEVEL
dc.subjectMARKET LEVELS
dc.subjectMARKET MECHANISM
dc.subjectMARKET MECHANISMS
dc.subjectMARKET SHARE
dc.subjectMARKET VALUE
dc.subjectMARKETING
dc.subjectMINES
dc.subjectMONITORING COSTS
dc.subjectMONITORING TECHNOLOGY
dc.subjectMONOPOLY
dc.subjectNASH EQUILIBRIUM
dc.subjectNEGATIVE EXTERNALITY
dc.subjectPER CAPITA INCOME
dc.subjectPERFECT INFORMATION
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLLUTION
dc.subjectPOLLUTION ABATEMENT
dc.subjectPOLLUTION LEVELS
dc.subjectPRICE SETTING
dc.subjectPRICING STRATEGY
dc.subjectPRIVATE INFORMATION
dc.subjectPRODUCERS
dc.subjectPRODUCT MARKETS
dc.subjectPRODUCT QUALITY
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION PROCESS
dc.subjectPRODUCTION PROCESSES
dc.subjectPRODUCTIVITY
dc.subjectPROFIT MAXIMIZATION
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC GOOD
dc.subjectPUBLIC GOODS
dc.subjectPURCHASING
dc.subjectPURCHASING POWER
dc.subjectQUALITY STANDARDS
dc.subjectREGULATORY AUTHORITY
dc.subjectREGULATORY CONSTRAINT
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY STANDARDS
dc.subjectREGULATORY SYSTEM
dc.subjectRELEVANT MARKETS
dc.subjectRETAILING
dc.subjectRETURNS
dc.subjectSALES
dc.subjectSCALE EFFECTS
dc.subjectSELF-REGULATION
dc.subjectSPREAD
dc.subjectSTOCK MARKET
dc.subjectSTOCKS
dc.subjectSUBSTITUTE
dc.subjectSUPPLIERS
dc.subjectSUPPLY CHAINS
dc.subjectTAX
dc.subjectTAX REVENUE
dc.subjectTRADE BARRIERS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE POLICY
dc.subjectTRADE REFORMS
dc.subjectTRADING
dc.subjectTRANSPARENCY
dc.subjectUTILITY FUNCTIONS
dc.subjectUTILITY MAXIMIZATION
dc.subjectVALUATION
dc.subjectWEALTH
dc.subjectWELFARE EFFECTS
dc.subjectWELFARE FUNCTION
dc.subjectWILLINGNESS TO PAY
dc.titleIs Better Information Always Good News? International Corporate Strategy and Regulationen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleIs Better Information Always Good News? International Corporate Strategy and Regulation
okr.date.disclosure2012-10-01
okr.date.doiregistration2025-04-10T12:14:40.954620Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2012/10/16873350/better-information-always-good-news-international-corporate-strategy-regulation
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeFinance and Markets
okr.guid255051468325302887
okr.identifier.doi10.1596/1813-9450-6251
okr.identifier.externaldocumentum000158349_20121024155827
okr.identifier.internaldocumentum16873350
okr.identifier.reportWPS6251
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/10/24/000158349_20121024155827/Rendered/PDF/wps6251.pdfen
okr.topicSocial Protections and Labor::Labor Policies
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicEconomic Theory & Research
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicEnvironmental Economics & Policies
okr.topicEnvironment
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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