Study On The Impact Of Institutional Investor Shareholding On Enterprise ESG Performance

In recent years,global ecological damage and environmental pollution are becoming increasingly serious,affecting the development process of the world economy,and green development is imperative.Environmental,social responsibility and corporate governance(ESG)focus on corporate financial performance,while taking social performance into consideration,which is of great significance to measure the sustainable development ability of enterprises.With the advancement of the registration system reform,the importance of institutional investors in China’s capital market has become increasingly prominent.Therefore,under the background of rarely discussing the influencing factors of enterprise ESG performance from the perspective of institutional investor shareholding,it is of great significance to study the relationship between institutional investor shareholding and the ESG performance of enterprises to promote the long-term sustainable development of Chinese enterprises and enrich the influencing factors of enterprise ESG performance.Based on the above background,this paper fully studies the relevant literature at home and abroad,based on the principal-agency theory,sustainable development theory,information asymmetry theory and stakeholder theory,and selects all listed companies in China’s A-share market from 2017 to 2021 as the research objects to conduct multiple regression analysis.Firstly,the paper studies the influence of institutional investors on ESG performance of enterprises;secondly,the investment institutions are divided into independent and independent,stable and transactional,and analyzes the influence of heterogeneous investment institutions on ESG performance of enterprises;then,discusses the influence of institutional investors on ESG performance of enterprises with different property rights and scale;then,conducts endogenous treatment and robustness test in various ways;finally,the financing constraint and information disclosure quality as the influence mechanism of institutional investors on the ESG performance is discussed.The main conclusions are as follows:(1)the holding of institutional investors has a significant positive impact on the ESG performance of enterprises.(2)Independent shareholding has a more significant positive impact on the ESG performance of enterprises than non-independent institutional investors.(3)Stable shareholding has a more significant positive impact on the performance of enterprise ESG than trading institutional investors.(4)Compared with non-state-owned enterprises,institutional investors have a more significant positive impact on the ESG performance of state-owned enterprises.(5)Compared with large enterprises,institutional investor shareholding has a more significant positive impact on the ESG performance of small enterprises.(6)Holding shares by institutional investors can have a positive impact on the ESG performance of enterprises by reducing financing constraints and improving the quality of information disclosure.Based on the above conclusions,this paper puts forward the corresponding suggestions: First,enterprises should attract institutional investors to hold shares,and optimize the shareholding structure.Secondly,institutional investors should pay more attention to the performance of enterprise ESG,cultivate ESG investment concepts,and actively exercise relevant rights.Finally,regulators should provide institutional guarantee,not only encourage institutional investors to increase investment,but also accelerate the construction of an ESG rating system in line with China’s national conditions.