The relationship between heterogeneous institutional investors' shareholdings and corporate ESG performance: Evidence from China

Liu, Yang; Jin, Xiao Meng; Ly, Kim Cuong; Mai, Yong

Abstract

This study examines the relationship between a company's Environmental, Social and Corporate Governance (ESG) performance and the relevant institutional investors' shareholdings. The findings indicate that institutional investors' shareholding has a positive effect on the ESG performance of Chinese companies, and pressure-resistant institutional investors have a greater impact, particularly in private enterprises and enterprises whose CEO does not serve as general manager. In light of these results, this paper proposes the following recommendations: institutional investors should take into account their ESG performance and social responsibility when selecting investee companies; and therefore, a heightened awareness of social responsibility to attract more investment and facilitate the company's growth.

Citation

Liu, Y., Jin, X. M., Ly, K. C., & Mai, Y. (2024). The relationship between heterogeneous institutional investors' shareholdings and corporate ESG performance: Evidence from China. Research in International Business and Finance, 71, Article 102457. https://doi.org/10.1016/j.ribaf.2024.102457

• Journal Article Type: Article
• Acceptance Date: Jun 15, 2024
• Online Publication Date: Jun 22, 2024
• Publication Date: 2024-08
• Deposit Date: Sep 25, 2024
• Publicly Available Date: Dec 23, 2025
• Journal: Research in International Business and Finance
• Print ISSN: 0275-5319
• Electronic ISSN: 0275-5319
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 71
• Article Number: 102457
• DOI: https://doi.org/10.1016/j.ribaf.2024.102457
• Keywords: ESG performance; institutional investors; pressure-sensitive; pressure-resistant; corporate governance
• Public URL: https://nottingham-repository.worktribe.com/output/39990400
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0275531924002502?via%3Dihub