Institutional shareholders and corporate social responsibility

• 成果类型: Article
• 署名作者: Chen, Tao; Dong, Hui; Lin, Chen
• 署名单位: Nanyang Technological University; Shanghai University of Finance & Economics; University of Hong Kong
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.06.007
• 发表日期: 2020
• 页码: 483-504
• 关键词: INSTITUTIONAL OWNERSHIP; Indexing; Shareholder attention; Corporate social responsibility; Random discontinuity

摘要

This study uses two distinct quasi-natural experiments to examine the effect of institutional shareholders on corporate social responsibility (CSR). We first find that an exogenous increase in institutional holding caused by Russell Index reconstitutions improves portfolio firms' CSR performance. We then find that firms have lower CSR ratings when shareholders are distracted due to exogenous shocks. Moreover, the effect of institutional ownership is stronger in CSR categories that are financially material. Furthermore, we show that institutional shareholders influence CSR through CSR-related proposals. Overall, our results suggest that institutional shareholders can generate real social impact. (C) 2019 Published by Elsevier B.V.