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Research On The Impact Of Institutional Investor Grouping On Corporate ESG Performance

Posted on:2024-09-06Degree:MasterType:Thesis
Country:ChinaCandidate:X L XuFull Text:PDF
GTID:2569307112477494Subject:Accounting
Abstract/Summary:PDF Full Text Request
With the rapid development of economic globalisation,problems such as environmental pollution,ecological damage and resource depletion are becoming increasingly serious,not only reducing the quality and efficiency of economic development,but also harming the ecological environment and the long-term interests of human society.The public is paying more and more attention to the commitment of enterprises to environmental protection and social responsibility in their production and operation activities,and expects enterprises to achieve economic benefits while taking into account the realisation of environmental and social values.Investors are also placing higher demands and standards on the long-term sustainability of enterprises in order to obtain long-term and stable investment returns.As a corporate performance evaluation standard that systematically examines a company’s performance in the three areas of environment,social responsibility and corporate governance,ESG represents a company’s involvement in environmental protection and social responsibility,and also reflects the long-term sustainability of the company.With the guidance of national policies and the continuous development of the ESG system,ESG has become an important reference indicator for investment decisions.As an important player in the investor market and a stakeholder of enterprises,institutional investors can have a significant impact on the management of enterprises’ business decisions.However,limited by the high concentration of equity in China,the shareholding of institutional investors in China is low and fragmented,with very limited monitoring and governance role on enterprises,and low participation in enterprise management and strategic decisions.Some scholars have found that in order to obtain more long-term and stable investment returns and expand their voice,institutional investors who have invested in the same companies have grouped together.Institutional investors consolidate resources and information through grouping to enhance their overall strength.Therefore,this paper explores whether the institutional investor grouping can bring into play the advantages of information and resources from the stakeholder’s perspective and thus put forward higher requirements on corporate governance mechanisms,information disclosure,resource allocation,environmental and social responsibility,etc.,so as to guide enterprises to enhance ESG investment,stimulate their intrinsic motivation to increase ESG investment,improve their ESG performance,and promote the transformation of enterprises to green production and development methods while helping institutional investors to obtain more long-term and stable investment returns.In addition,compared to the mature development of ESG systems overseas,China’s ESG practice is still at a developmental stage,and the study of the relationship between institutional investor grouping and corporate ESG performance can also provide some reference and reference for relevant regulatory authorities to establish and improve ESG information disclosure and management.Therefore,the study of the impact of institutional investor grouping on corporate ESG performance has both theoretical and practical significance.For this purpose,this paper selects A-share listed companies in Shanghai and Shenzhen from 2013 to 2020 as the research object,conducts theoretical analysis based on stakeholder theory,principal-agent theory,information asymmetry theory and signaling theory to propose hypotheses,incorporates information transparency,financing constraints and executive on-the-job consumption of listed companies into the study of institutional investors’ huddle on corporate ESG performance for empirical testing,and conducts robustness tests and heterogeneity analysis on the empirical results.The final conclusions are as follows.(1)The effect of institutional investor grouping on corporate ESG performance is positively correlated,i.e.institutional investor grouping can improve corporate ESG performance.(2)The intermediary effect of listed company information transparency and financing constraints,i.e.institutional investor groups will improve ESG performance by increasing listed company information transparency and alleviating financing constraints.(3)Executive on-the-job spending plays a moderating role in the relationship between institutional investor grouping and enhanced corporate ESG performance,i.e.,higher executive on-the-job spending weakens the effect of institutional investor grouping on enhanced corporate ESG performance.(4)The impact of institutional investor groups on corporate ESG performance varies by marketisation and level of strategic commitment,with the effect of institutional investor groups on corporate ESG performance being stronger in regions with a high level of marketisation.The effect of institutional investor grouping on corporate ESG performance is stronger in regions with higher levels of strategic commitment.
Keywords/Search Tags:institutional investors, institutional investor huddle, corporate ESG performance, corporate governance
PDF Full Text Request
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