TY - JOUR

T1 - Institutional ownership, environmental, social, and governance performance and disclosure

T2 - A review on empirical quantitative research

AU - Velte, Patrick

PY - 2020/9/22

Y1 - 2020/9/22

N2 - Since the financial crisis of 2008–2009, nonfinancial-related shareholder activism increased, as public interest entities (PIEs) should strengthen their environmental, social, and governance (ESG) activities. This study aims to determine whether institutional ownership (IO) impacts ESG performance and disclosure and vice versa. Moreover, IO’s moderating and mediating influence on the relationship between ESG and firms’ financial consequences is included. This is the first literature review focusing on IO and ESG, describing IO as independent, dependent, moderator, and mediator variable. A structured literature review with 81 empirical-quantitative (archival) studies on that topic is presented based on an agency theoretical framework. Regarding the main results, long-term IO leads to increased ESG performance. Moreover, ESG performance promotes the ratio of institutional investors. Other relationships are rather heterogeneous and too low in an amount yet, stressing major research gaps.

AB - Since the financial crisis of 2008–2009, nonfinancial-related shareholder activism increased, as public interest entities (PIEs) should strengthen their environmental, social, and governance (ESG) activities. This study aims to determine whether institutional ownership (IO) impacts ESG performance and disclosure and vice versa. Moreover, IO’s moderating and mediating influence on the relationship between ESG and firms’ financial consequences is included. This is the first literature review focusing on IO and ESG, describing IO as independent, dependent, moderator, and mediator variable. A structured literature review with 81 empirical-quantitative (archival) studies on that topic is presented based on an agency theoretical framework. Regarding the main results, long-term IO leads to increased ESG performance. Moreover, ESG performance promotes the ratio of institutional investors. Other relationships are rather heterogeneous and too low in an amount yet, stressing major research gaps.

KW - Management studies

KW - Sustainability Science

UR - http://www.scopus.com/inward/record.url?scp=85092764949&partnerID=8YFLogxK

U2 - 10.21511/ppm.18(3).2020.24

DO - 10.21511/ppm.18(3).2020.24

M3 - Scientific review articles

AN - SCOPUS:85092764949

VL - 18

SP - 282

EP - 305

JO - Problems and Perspectives in Management (PPM)

JF - Problems and Perspectives in Management (PPM)

SN - 1727-7051

IS - 3

ER -