“Do institutional investors drive corporate social responsibility? International evidence” (2018), by Alexander Dyck et al. Business and Management research paper. Original abstract below, unchanged. No free PDF was found.

Do institutional investors drive corporate social responsibility? International evidence

Alexander Dyck, Karl V. Lins, Lukas Roth et al. · September 4, 2018 · Business and Management

Abstract

This paper assesses whether shareholders drive the environmental and social (E&S) performance of firms worldwide. Across 41 countries, institutional ownership is positively associated with E&S performance with additional tests suggesting this relation is causal. Institutions are motivated by both financial and social returns. Investors increase firms’ E&S performance following shocks that reveal financial benefits to E&S improvements. In cross section, investors increase firms’ E&S performance when they come from countries with a strong community belief in the importance of E&S issues, but not otherwise. As such, these institutional investors transplant their social norms regarding E&S issues around the world.

Source page DOI: 10.1016/j.jfineco.2018.08.013