Corporate ESG Profiles and Investor Horizons

• 成果类型: Article
• 署名作者: Starks, Laura T.; Venkat, Parth; Zhu, Qifei
• 署名单位: University of Texas System; University of Texas Austin; U.S. Securities & Exchange Commission (SEC); National University of Singapore
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70008
• 发表日期: 2026-04
• 页码: 603-642
• 关键词: institutional investors; SOCIAL-RESPONSIBILITY; OPEN-END; MARKET; LIMITS; performance; IMPACT; funds; COSTS

摘要

We find that long-term institutional investors tilt their portfolios toward firms with better Environmental, Social, and Governance (ESG) profiles, in the cross sections of both institutional investor portfolios and the ownership of firms. We test whether several theoretically motivated mechanisms can explain this relationship. Our results that long-term investors exhibit patience with firms around poor earnings announcements, but quickly sell portfolio firms after negative ES incidents, support the view that long- and short-term investors evaluate information differently. Our evidence shows that limits-to-arbitrage play a role, as we find that investors' ESG tilt weakens following regulatory shocks that shorten their horizon.