Multiple shareholding institutional investors and green governance of heavy-polluting industries

Fengguang Lyu; Zhiping Zhang; Guangxin Fu; Zhangxin Liu; Sirimon Treepongkaruna

doi:10.1002/bse.3667

Multiple shareholding institutional investors and green governance of heavy-polluting industries

Fengguang Lyu, Zhiping Zhang, Guangxin Fu, Zhangxin Liu, Sirimon Treepongkaruna

Accounting and Finance

Research output: Contribution to journal › Article › peer-review

8 Citations (Scopus)

Abstract

Green governance in heavily polluting industries is crucial for achieving sustainable economic growth. By analyzing Chinese A-share listed companies from these industries between of 2010 and 2021, we assess the influence of multiple shareholding institutional investors (MSII) on a company's environmental performance. We find that MSIIs can improve environmental performance, highlighting their positive role in green governance. Further analyses reveal that this green influence stems from three key effects: supervisory oversight by principal shareholders, managerial incentives, and knowledge transfer. Consistent with the risk-averse hypothesis, our study also suggests that MSIIs could drive the green transformation of heavy-polluting industries out of risk aversion.

Original language	English
Pages (from-to)	3569-3587
Number of pages	19
Journal	Business Strategy and the Environment
Volume	33
Issue number	4
Early online date	9 Jan 2024
DOIs	https://doi.org/10.1002/bse.3667
Publication status	Published - May 2024

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abstract = "Green governance in heavily polluting industries is crucial for achieving sustainable economic growth. By analyzing Chinese A-share listed companies from these industries between of 2010 and 2021, we assess the influence of multiple shareholding institutional investors (MSII) on a company's environmental performance. We find that MSIIs can improve environmental performance, highlighting their positive role in green governance. Further analyses reveal that this green influence stems from three key effects: supervisory oversight by principal shareholders, managerial incentives, and knowledge transfer. Consistent with the risk-averse hypothesis, our study also suggests that MSIIs could drive the green transformation of heavy-polluting industries out of risk aversion.",

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AU - Lyu, Fengguang

AU - Zhang, Zhiping

AU - Fu, Guangxin

AU - Liu, Zhangxin

AU - Treepongkaruna, Sirimon

PY - 2024/5

Y1 - 2024/5

N2 - Green governance in heavily polluting industries is crucial for achieving sustainable economic growth. By analyzing Chinese A-share listed companies from these industries between of 2010 and 2021, we assess the influence of multiple shareholding institutional investors (MSII) on a company's environmental performance. We find that MSIIs can improve environmental performance, highlighting their positive role in green governance. Further analyses reveal that this green influence stems from three key effects: supervisory oversight by principal shareholders, managerial incentives, and knowledge transfer. Consistent with the risk-averse hypothesis, our study also suggests that MSIIs could drive the green transformation of heavy-polluting industries out of risk aversion.

AB - Green governance in heavily polluting industries is crucial for achieving sustainable economic growth. By analyzing Chinese A-share listed companies from these industries between of 2010 and 2021, we assess the influence of multiple shareholding institutional investors (MSII) on a company's environmental performance. We find that MSIIs can improve environmental performance, highlighting their positive role in green governance. Further analyses reveal that this green influence stems from three key effects: supervisory oversight by principal shareholders, managerial incentives, and knowledge transfer. Consistent with the risk-averse hypothesis, our study also suggests that MSIIs could drive the green transformation of heavy-polluting industries out of risk aversion.

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KW - green effects

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Multiple shareholding institutional investors and green governance of heavy-polluting industries

Abstract

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