TY - JOUR

T1 - Which Institutional Investors Drive Corporate Sustainability?

T2 - A Systematic Literature Review

AU - Velte, Patrick

N1 - Funding Information: Open access funding enabled and organized by Projekt DEAL. Publisher Copyright: © 2022 The Author. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

PY - 2023/1

Y1 - 2023/1

N2 - In this article, we review recent archival research (66 studies) on the influence of institutional ownership (IO) heterogeneity on corporate sustainability. Relying on an agency-theoretical framework, we differentiate between various types of IO and their nature. We found that most prior research concentrates on the impact of IO heterogeneity on corporate sustainability performance. Long-term, sustainable, and foreign IO leads to better ESG/CSR outputs. Based on the business case argument for corporate sustainability, long-term institutional investors moderate the positive link between corporate sustainability and future financial performance. We provide useful recommendations for future research by focusing on endogeneity concerns as methodological challenges and content-related proposals for future research designs.

AB - In this article, we review recent archival research (66 studies) on the influence of institutional ownership (IO) heterogeneity on corporate sustainability. Relying on an agency-theoretical framework, we differentiate between various types of IO and their nature. We found that most prior research concentrates on the impact of IO heterogeneity on corporate sustainability performance. Long-term, sustainable, and foreign IO leads to better ESG/CSR outputs. Based on the business case argument for corporate sustainability, long-term institutional investors moderate the positive link between corporate sustainability and future financial performance. We provide useful recommendations for future research by focusing on endogeneity concerns as methodological challenges and content-related proposals for future research designs.

KW - Sustainability Science

KW - Management studies

KW - agency theory

KW - corporate goverannce

KW - corporate social responsibility

KW - institutional investors

KW - institutional ownership

KW - monitoring

KW - agency theory

KW - corporate governance

KW - corporate social responsibility

KW - institutional investors

KW - institutional ownership

KW - monitoring

UR - http://www.scopus.com/inward/record.url?scp=85129304018&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/eac2d700-edd7-3625-bd10-75bf8e860b4e/

U2 - 10.1002/bse.3117

DO - 10.1002/bse.3117

M3 - Scientific review articles

VL - 32

SP - 42

EP - 71

JO - Business Strategy and the Environment

JF - Business Strategy and the Environment

SN - 0964-4733

IS - 1

ER -