Do long-term institutional investors promote corporate social responsibility activities?

By Hyun-Dong Kim, Taeyeon Kim, Yura Kim, Kwangwoo Park. Journal of Banking & Finance, 2019

219 citations recorded by the source corpus.

This paper examines how the investment horizons of a firm's institutional investors affect its corporate social responsibility (CSR) activities. Using data on U.S. firms’ CSR ratings over the 1995–2012 period, we find that longer investment horizons are positively related to CSR. Further, active long-term institutions increase CSR whereas passive long-term institutions have no significant effect. Our results suggest that investors with long-term horizons have more incentives to monitor their firms which leads managers to engage in more vigorous CSR activities.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fbbba6dc187c0db3bb2d88900499e0f3731614c9

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Citations in the corpus

Firms and social responsibility: A review of ESG and CSR research in corporate finance (2021, background): “Krüger (2015) analyzes the stock market reactions to over two thousand positive and negative sustainability events for U.”