Institutional Investors and Corporate Environmental and Financial Performance

Authors

Steve M. Miller, University of South Florida
Bin Qiu, Missouri Western State University
Bin Wang, Marquette UniversityFollow
Tina Yang, University of South Florida St. Petersburg

Document Type

Article

Publication Date

9-2023

Publisher

Wiley

Source Publication

European Financial Management

Source ISSN

1354-7798

Original Item ID

10.1111/eufm.12392

Abstract

We propose a conceptual framework to illustrate that when three conditions hold, institutional investors moderate a positive relation between corporate financial performance and corporate environmental performance. We explore heterogeneities across institution types to demonstrate the importance of each condition. The moderating effect works through the channels of expert consulting and effective monitoring. Our results have important policy and practical implications given the global trend of ownership concentration in institutional investors and the projection that by 2025, one out of three dollars under professional management will be invested in corporate social responsibility assets.

Comments

Accepted version. European Financial Management. Vol. 29, No. 4 (September 2023): 1218-1262. DOI. © 2023 Wiley. Used with permission.

Recommended Citation

Miller, Steve M.; Qiu, Bin; Wang, Bin; and Yang, Tina, "Institutional Investors and Corporate Environmental and Financial Performance" (2023). Finance Faculty Research and Publications. 156.
https://epublications.marquette.edu/fin_fac/156