Research Of Fund Investors' Green Governance Effects On Listed Company

Nowdays,the economic development model of China is transfer from resource consumption type to environmental friendly type.The importance of green economy and sustainable development has become a common consensus in our society.In the green governance framework,government guide the market economy behavior as a legal institutions supplier;corporates undertake economic activities as key actors;public is a wide participants in greengovernance.However,individual public member's influence is limited as lacking enough resource and abilities to conduct more governance actions.Institutional investors,as public interest spokesman under 'fiduciary duty',will take theresponsibility for social and environmental improvement.Actually,institutional investors is not only an economical organization,but also has social attribute,they can make effective response to the society expects.In China financial market,institutional investor plays a significant role in the process of realizing the sustainable development.They not only have variety economic incentives and moral pressure to monitor and improve companies' social responsibility behavior,also have enough ability and motivation to promote the spread of socially responsible investment.Institutional investors give a positive signal to capital market during them conduct green investment idea and practises.Investee corporations thus make changes in environmental information disclosure,social responsibility behavior and corporate governance quality.Institutional investors make investment yield by help corporations acccepted by high level social norms and promote overall economic transformation at last.Based on 2009-2016 China A-listed company samples,this paper research the green governance effect of fund investor from social network perspective.Through the analysis of investor game model,network governance mechanism and mpirical test,the article has solid research conclusions in the information resources,network pressure and economic motivation in fund investor network.At first,government,company,social organizations and the public each has a clear role in the green governance framework.But in the process to realization governance goal,we need an intermediary role to perform actually governance behavior.In practice,the fund investors have enough motivation and ability,through effective path,to achieve the ultimate green governance goal.Starting from the role definition and motivation analysis,this article uses trilateral dynamic game as research methods and find fund investor is a key to connecting each governance subject They will make up for other subject's defects and have legal rationality.Secondly,when fund investor use ESG idea,they may have a different price-supports to each kind corporations.This support degree depends on factors like government policy,social norm and social responsibility cost.When government and public give investor more positive incentive like economic rewards and reputation,fund investors willing participate more in governance process and contribute to whole social welfare increase.After empirical analysis of market data,results point fund investor holdings have an effective support to stock price Moreover,this support effect is indifference between two kinds company,thus we may improve at this side.Thirdly,fund investors and their network resources,to a certain extent,facilitate investee corporations have more environmental information disclosures.However,empirical results show fund investors only care about whether corporation disclose enviroument information or not,they have limited attention to the frequency,content and quality of environmental information disclosures.We may find fund investors just in order to meet basic market requirements and social expections,but lack of attention to the substance.Fund investors and network resources promote investee corporations to actively fulfill social responsibility behavior.Company will be more likely to release CSR report and have a high CSR score than those don't have block fund investor.Pressure mechanism is the main tool used by fund investors in this process.Lastly,resources in fund investor network promote company investment efficiency and values.Fund investor network centrality,which means a high ability to acquire information in the networks,is positively related to investment efficiency.The economic motivation of the investors has a positive regulating effect in this mechanism process.