Jul 2026· Accounting & Finance· 0 citations· 61 references
Abstract
This study explores whether institutional investors' ESG preferences affect firms' real investment decisions in China. Using quarterly panel data from Q1 2009 to Q4 2023, we construct a measure of ESG‐oriented institutional ownership (
ESGIO
) and find that firms with higher ESGIO exhibit significantly greater capital expenditures, and this remains robust after distinguishing from the effect of general institutional ownership. This relation is also robust to various specifications and endogeneity concerns. Mechanism tests show that the relation between ESGIO and investment is stronger when stock prices are more informative and trading liquidity is higher. The effect is stronger among non‐state‐owned enterprises, highly leveraged firms, firms with lower internal cash flow, lower ESG rating divergence, externally assured ESG disclosures and during periods of elevated investor sentiment. This paper highlights the role of capital markets in promoting sustainable corporate investment and offers policy insights, suggesting that an enhanced ESG disclosure framework can facilitate the allocation of ESG‐aligned patient capital.
This study examines the influence of the cost of debt, managerial overconfidence, and institutional shareholding on Environmental, Social, and Governance (ESG) performance among firms listed on the Indonesia Stock Exchange (IDX). Using a quantitative approach, the study analyzes 85 firms with available ESG scores in 20...
Global pressure for corporate sustainability has pushed capital market investors toward firms with strong Environmental, Social, and Governance (ESG) performance, with banks positioned as gatekeepers of capital allocation. Evidence on whether ESG raises firm value remains contradictory: several Indonesian banks recorde...
I. P. D. Y. Nugraha, Putu Sri Arta Jaya Kusuma· Jurnal Ekonomi dan Bisnis Ja...· 0 citations
Environmental, social, and governance (ESG) disclosure is increasingly important for corporate sustainability, yet less is known about how internal incentive arrangements shape firms’ sustainability transparency. This study examines changes in ESG disclosure quality following executive equity incentive plan adoption am...
This study examines whether investor attention and the market information environment transmit environmental, social, and governance (ESG) information into stock returns. The analysis employs a balanced panel of 31 mining companies listed on the Indonesia Stock Exchange from 2019 to 2023, comprising 155 firm-year obser...
Berto Usman, Muhammad Waldiansyah, Anuman Chanthawong et al.· Journal of Risk and Financia...· 0 citations
Emerging-market firms are asked to fund environmental, social and governance commitments at a moment when capital is scarce and investors still question whether corporate sustainability spending destroys or creates shareholder wealth; in Bangladesh, where the cumulative intensity of green-banking and disclosure directi...
K. M. Anwarul Islam· Bangladesh Journal of Multid...· 1 citation
This paper investigates the impact of corporate financial asset holdings on green innovation and explores the internal mechanisms through which financialization shapes firms’ sustainability-oriented technological strategies. Using a comprehensive panel dataset of Chinese A-share non-financial firms from 2010 to 2023, t...
Simeng Lyu, Si-Yuan Zhao, R. El Khoury et al.· Sustainability· 0 citations
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