TY - JOUR
T1 - Institutional investors, corporate social responsibility, and stock price performance
AU - Motta, Elizabeth Marie
AU - Uchida, Konari
N1 - Funding Information:
The symposium was sponsored by the Project for Dissemination of Securities Knowledge, and supported by the Ministry of Environment, the Japanese Bankers Association, and the Financial Services Agency. These national government measures are likely to increase institutional investor consciousness and, subsequently, investee firm environmental activities.
Publisher Copyright:
© 2017
PY - 2018/3
Y1 - 2018/3
N2 - In 2006, the United Nations Global Compact launched Principles for Responsible Investment (PRI), and the Japanese Ministry of Environment advocated financial mechanisms for environmental protection. We find that institutional ownership in 2005 is positively related to the probability of subsequent improvements in environment ratings for Japanese firms. The result is especially evident for domestic institutional shareholders who signed up for the PRI. These results suggest that soft laws aimed at institutional investors can enhance responsible business practices and that national government initiatives play an effective role. Finally, improved ratings in the environment category do not harm shareholder wealth.
AB - In 2006, the United Nations Global Compact launched Principles for Responsible Investment (PRI), and the Japanese Ministry of Environment advocated financial mechanisms for environmental protection. We find that institutional ownership in 2005 is positively related to the probability of subsequent improvements in environment ratings for Japanese firms. The result is especially evident for domestic institutional shareholders who signed up for the PRI. These results suggest that soft laws aimed at institutional investors can enhance responsible business practices and that national government initiatives play an effective role. Finally, improved ratings in the environment category do not harm shareholder wealth.
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U2 - 10.1016/j.jjie.2017.12.002
DO - 10.1016/j.jjie.2017.12.002
M3 - Article
AN - SCOPUS:85039446075
SN - 0889-1583
VL - 47
SP - 91
EP - 102
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
ER -
