Research On The Impact Of Institutional Investors On Corporate Social Responsibility Of Listed Companies

The Australian fire,which lasted more than five months;swept large-scale locust plagues in more than 20 countries,including West Africa,East Africa,and South Asia;and the global outbreak of a new type of coronavirus,the beginning of 2020 was not ordinary.In fact,with the rapid economic growth and the continuous upgrading of people's material and cultural needs,the world is increasingly facing a series of serious problems such as resource constraints,ecological damage and social conflicts.In recent years,the domestic situation in China is not optimistic: Environmental degradation,smog weather and intensified social conflicts have caused widespread concern at all levels of the country.Against this background,carrying out economic activities in an environmentally and socially responsible manner has gradually become the consensus of governments,enterprises,investors and financial institutions.Based on the concept of green development,more and more investors have begun to incorporate non-financial performance such as the Environment,Social and Governance(ESG)of enterprises into investment and evaluation decisions.Practice responsible investment in the process of investing and improving corporate governance to guide and promote the sustainable development of enterprises and the economy and society together.So,improving the performance of corporate social responsibility is a problem we need to solve urgently.In recent years,the scale of institutional investors in the global capital market has continued to grow,and their role in corporate operations and management has become increasingly apparent.Studies on the performance of institutional investors and corporate social responsibility have also received widespread attention from scholars at home and abroad.Based on previous research,this paper selects Chinese A-share listed companies from2009 to 2017 as a sample,and uses annual and industry fixed-effect multiple regression models to empirically test the difference between the overall institutional investor holdings and heterogeneous institutional investor holdings on corporate social responsibility performance?At the same time,considering the problems of endogenousness and robustness,the robustness test was performed by means of instrumental variables and panel data.Research indicates:(1)The overall institutional investor shareholding has a significant positive impact on corporate ESG performance.Specifically,this positive impact is mainly achieved through the positive impact on stakeholder responsibility.After we have dealt with endogenous and robust issues,the above conclusions still hold;(2)Long-term and independent institutional investor holdings have a significant positive impact on corporate ESG performance,while short-term and non-independent institutional investors have asignificant negative impact on corporate ESG performance.In addition,the sample is further grouped according to the nature of the company and the ESG score.It can be found that the overall institutional investor holdings have a significant role in promoting corporate social responsibility performance of state-owned and low ESG scores.The impact of heterogeneous institutional investors on the ESG performance of companies in different groups is very different,but long-term,independent institutional investors still show a positive effect overall.Except for short-term institutional investor holdings that have a significant positive impact on CSR performance in low ESG scores,short-term,non-independent institutional investors have no significant impact on the CSR performance of other groups,and may even have negative effects.Therefore,the government should encourage and support the development of institutional investors,and guide institutional investors to regulate their participation in corporate governance in order to give play to their role in capital guidance and corporate supervision,and promote the performance of corporate social responsibility.