Responsible investment in the Chinese stock market

Gao, Ya; Xiong, Xiong; Xu, Feng

doi:10.1016/j.ribaf.2019.101173

Cited by 25 publications

(10 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…96, 5.18, 4.57, and 11.96, and all estimations are positive and significant at the 1 percent level. In comparison, the results in Panel B have the coefficients of 0.0008, 0.0017, 0.0003, and 0.0005 and the 4 The ESG 40 is composed of the China Securities Index Co., Ltd, which includes 40 stocks with the highest ESG ratings from the SSE 180 Corporate Governance Index, and can be a good indicator for firms with good ESG performance in China (also used in Gao et al, 2020;Wu et al, 2021).…”

Section: Institutional Holding Proportion and Firms' Esg Performancementioning

confidence: 99%

The impact of institutional investors on ESG: Evidence from China

Liu

Xiong

Gao

et al. 2022

Accounting & Finance

Self Cite

View full text Add to dashboard Cite

This paper studies the influence of institutional ownership on the Chinese A‐shares' ESG performance. Findings reveal the positive improvement from institutional investors, and this impact is stronger in firms with better‐expected ESG performance and low initial ESG performance. Besides, heterogeneous institutional investors have different influences, and only a pressure‐resistant institution plays the promotion role. Further studies based on the period following the financial crisis and when emphasising the environmental protection policy reveal that financial motivation and reputation motivation could be the reason for institutional holding. Our findings are robust after using the instrumental variable analysis, controlling for firm fixed effects, and replacing institutional holdings, and could be beneficial for the governance of firms in China.

show abstract

Section: Institutional Holding Proportion and Firms' Esg Performancementioning

confidence: 99%

The impact of institutional investors on ESG: Evidence from China

Liu

Xiong

Gao

et al. 2022

Accounting & Finance

Self Cite

View full text Add to dashboard Cite

show abstract

“…Investigation into the Chinese market is motivated by several reasons. First, while the literature on ESG investments widely assesses US and European ESG markets, the Chinese ESG market received relatively little attention over the years (Auer and Schuhmacher, 2016;Kao et al, 2018;Gao et al, 2020). China represents the most relevant emerging market (Rezaee et al, 2020) and it is characterized by several peculiarities, such as the large influence of state ownership and the corporate governance setting (Ji et al, 2017;Rezaee et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Second, the Chinese ESG market is growing (Gao et al, 2020) and it is experiencing political pressure aimed at reducing pollution and at increasing both firm responsibility and ESG disclosure (McGuinness et al, 2017;Liao et al, 2018;Wang et al, 2018;Wei and Xiao, 2020). Finally, recent studies highlight Chinese institutional investor preference toward ESG investments given the long-term perspective of such types of assets (Gao et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…First, while the literature on ESG investments widely assesses US and European ESG markets, the Chinese ESG market received relatively little attention over the years (Auer and Schuhmacher, 2016; Kao et al. , 2018; Gao et al. , 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Second, the Chinese ESG market is growing (Gao et al. , 2020) and it is experiencing political pressure aimed at reducing pollution and at increasing both firm responsibility and ESG disclosure (McGuinness et al.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Are ESG indexes a safe-haven or hedging asset? Evidence from the COVID-19 pandemic in China

Piserà

Chiappini

2022

IJOEM

View full text Add to dashboard Cite

PurposeThe aim of the paper is to investigate the risk-hedging and/or safe haven properties of environmental, social and governance (ESG) index during the COVID-19 in China.Design/methodology/approachThis paper employs the DCC, VCC, CCC as well as Newey–West estimator regression.FindingsThe findings provide empirical evidence of the risk hedging properties of ESG indexes as well as of the environmental, social and governance thematic indexes during the outbreak of the COVID-19 crisis. The results also support the superior risk hedging properties of ESG indexes over cryptocurrency. However, the authors do not find any safe haven properties of ESG, Bitcoin, gold and West Texas Intermediate (WTI).Practical implicationsThe paper offers therefore, practical policy implications for asset managers, central bankers and investors suggesting the pandemic risk-hedging opportunities of ESG investments.Originality/valueThe study represents one of the first empirical contributions examining safe-haven and hedging properties of ESG indexes compared to traditional and innovative safe haven assets, during the eruption of the COVID-19 crisis.

show abstract

Socially responsible portfolios,environmental, social, corporate governance (ESG)efficient frontiers, and psychic dividends

Useche,

Martínez‐Ferrero,

Alayón‐Gonzales

2023

Corp Soc Responsibility Env

View full text Add to dashboard Cite

The aim of this article is to evaluate the performance of investment portfolios built under environmental, social, and corporate governance (ESG) criteria or socially responsible portfolios, based on companies listed on three representative stock exchanges in Latin America (Chile, Colombia, and Peru) for the period 2011–2019. The performance of portfolios comprising high‐ESG stocks was compared with that of low‐ESG performance portfolios and with portfolios of companies that did not report such information, as well as against the main index of each market. A novel utility function was defined that allows evaluating different degrees of propensity to responsible investment, based on which restricted optimization processes were conducted to build efficient frontiers that combine traditional mean–variance aspects with ESG elements. Based on these frontiers, a measure of the psychic dividend or ESG utility premium generated by investing in high‐ESG portfolios is proposed. Results obtained in risk and return rates and Jensen, Treynor, alpha, VaR, tracking error, information coefficient, efficient frontiers, and utility premium show the value of following responsible investment criteria and the clear disadvantages in investing in companies that do not report ESG information. This research contributes to the debate on the importance of socially responsible investment guided by ESG criteria, filling a gap in the literature regarding Latin America and confirming the better performance by calculating a wide range of portfolio evaluation indicators. We proposed a novel approach to optimization with sustainability constraints, incorporating the utility premium derived from investing in stocks with better ESG performance.

show abstract

Responsible investment in the Chinese stock market

Cited by 25 publications

References 51 publications

The impact of institutional investors on ESG: Evidence from China

The impact of institutional investors on ESG: Evidence from China

Are ESG indexes a safe-haven or hedging asset? Evidence from the COVID-19 pandemic in China

Socially responsible portfolios,environmental, social, corporate governance (ESG)efficient frontiers, and psychic dividends

Contact Info

Product

Resources

About