Research On The Mechanism Of The Impact Of Institutional Investors' Holdings On Corporate ESG Performanc

In recent years,ESG(Environmental,Social Responsibility,and Corporate Governance)stands out as a framework concept for evaluating the sustainable development capability of enterprises.At the same time,the investment institutions in China’s capital market are constantly improving with the development of the market economy,and the structure of institutional investors is becoming more diversified and stable.At present,China has formed institutional investors consisting of funds,Qualified Foreign Institutional Investor,securities firms,insurance,social security funds,trusts,banks,etc.As participants in corporate governance,they can affect the ESG performance of enterprises.Therefore,this article studies the impact of institutional investor shareholding on corporate ESG performance,in order to correctly understand the utility of institutional investors in corporate governance,guide enterprises to value and utilize their positive impact on ESG performance,and improve sustainable development capabilities.On the basis of existing research,this article selects listed companies in the Shanghai and Shenzhen A-share manufacturing industry from 2011 to 2021 as samples to empirically study the impact of institutional investor shareholding on ESG performance of enterprises.The results show that institutional investor shareholding has a positive impact on ESG performance of enterprises.Further research finds that financing constraints and information disclosure quality play a part of the mesomeric effect in the relationship between institutional investor shareholding and enterprise ESG performance,specifically,institutional investor shareholding reduces the financing constraints of enterprises,while improving the quality of enterprise information disclosure,thereby improving enterprise ESG performance.On the basis of empirical research,this article selects Hualing Iron and Steel as the case study object.Against the background of Hualing Iron and Steel’s market-oriented debt to equity swap,it analyzes the impact of Hualing Iron and Steel’s introduction of institutional investors on its financing constraints,information disclosure quality,and ESG performance.The results show that with the increase of Hualing Iron and Steel’s institutional investor shareholding ratio,Hualing Iron and Steel’s financing constraints have decreased,At the same time,the internal and external financing situation of enterprises has been improved;Valin Steel’s information disclosure quality rating has significantly improved,and the ESG information disclosure situation has also improved;The ESG performance of enterprises has also improved accordingly.Based on this,this article proposes relevant suggestions for different entities,aiming to provide suggestions for improving corporate governance,improving ESG performance of enterprises,and promoting sustainable development of enterprises.