The impact of institutional investors on <scp>ESG</scp>: Evidence from China

Liu, Jinchi; Xiong, Xiong; Gao, Ya; Zhang, Jin

doi:10.1111/acfi.13011

Cited by 43 publications

(10 citation statements)

References 45 publications

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“…The growing trend of non-financial shareholder activism among these investors reflects a broader redefinition of value, challenging firms to elevate ESG performance as a central component of corporate strategy (Briscoe and Gupta, 2016; Goranova and Ryan, 2013; Guay et al. , 2004; Liu et al. , 2023).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

From profits to purpose: ESG practices, CEO compensation and institutional ownership

Nasta,

Magnanelli,

Ciaburri

2024

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PurposeBased on stakeholder, agency and institutional theory, this study aims to examine the role of institutional ownership in the relationship between environmental, social and governance practices and CEO compensation.Design/methodology/approachUtilizing a fixed-effect panel regression analysis, this research utilized a panel data approach, analyzing data spanning from 2014 to 2021, focusing on US companies listed on the S&P500 stock market index. The dataset encompassed 219 companies, leading to a total of 1,533 observations.FindingsThe analysis identified that environmental scores significantly impact CEO equity-linked compensation, unlike social and governance scores. Additionally, it was found that institutional ownership acts as a moderating factor in the relationship between the environmental score and CEO equity-linked compensation, as well as the association between the social score and CEO equity-linked compensation. Interestingly, the direction of these moderating effects varied between the two relationships, suggesting a nuanced role of institutional ownership.Originality/valueThis research makes a unique contribution to the field of corporate governance by exploring the relatively understudied area of institutional ownership's influence on the ESG practices–CEO compensation nexus.

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Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

From profits to purpose: ESG practices, CEO compensation and institutional ownership

Nasta,

Magnanelli,

Ciaburri

2024

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“…Companies with a strong ESG performance send positive signals to the market. Institutional investors generally favor companies with higher ESG ratings [57]. To attract investors and institutions, companies are more proactive in fulfilling their environmental and social responsibilities and strengthening corporate governance.…”

Section: Research Hypothesesmentioning

confidence: 99%

The Impact of Technology Mergers and Acquisitions on Enterprise Sustainable Competitiveness

2024

Sustainability

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In the context of global competition, enterprises are increasingly adopting technology mergers and acquisitions (M&As) as a strategic approach to enhance their sustainable competitiveness. This study investigates the impact of technology M&As on the sustainable competitiveness of enterprises, focusing on Chinese A-share listed companies from 2007 to 2021. Employing a staggered difference-in-difference (DID) model for empirical analysis, the findings reveal that technology M&As significantly boost the sustainable competitiveness of enterprises by 6.2% compared to non-technology M&A firms. Moreover, the study employs a mediation effect model to demonstrate that technology M&As contribute to improved enterprise productivity levels and market power. Heterogeneity analysis further indicates that the positive effects are more pronounced in firms with a strong ESG performance and those with lower levels of digital development. The study offers valuable insights for corporate strategic planning and policy-making, emphasizing the role of technology M&As in fostering enterprise sustainability and competitiveness.

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“…Otherwise, they are short‐term trading institutional investors. Pressure‐sensitive and pressure‐resistant institutional investors emphasize the commercial connections between institutional investors and their shareholdings (Brickley et al, 1988; Liu et al, 2023). Institutional investors with commercial connections are called pressure‐sensitive; otherwise, pressure‐resistant institutional investors.…”

Section: Introductionmentioning

confidence: 99%

Multiple shareholding institutional investors and green governance of heavy‐polluting industries

Lyu,

Zhang,

et al. 2024

Bus Strat Env

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Green governance in heavily polluting industries is crucial for achieving sustainable economic growth. By analyzing Chinese A‐share listed companies from these industries between of 2010 and 2021, we assess the influence of multiple shareholding institutional investors (MSII) on a company's environmental performance. We find that MSIIs can improve environmental performance, highlighting their positive role in green governance. Further analyses reveal that this green influence stems from three key effects: supervisory oversight by principal shareholders, managerial incentives, and knowledge transfer. Consistent with the risk‐averse hypothesis, our study also suggests that MSIIs could drive the green transformation of heavy‐polluting industries out of risk aversion.

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The impact of institutional investors on ESG: Evidence from China

Cited by 43 publications

References 45 publications

From profits to purpose: ESG practices, CEO compensation and institutional ownership

From profits to purpose: ESG practices, CEO compensation and institutional ownership

The Impact of Technology Mergers and Acquisitions on Enterprise Sustainable Competitiveness

Multiple shareholding institutional investors and green governance of heavy‐polluting industries

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