Abstract
This paper examines the impact of corporate ownership structure on greenhouse gas (GHG) emissions in China, with a focus on the role of institutional investors. Using data on Chinese listed companies, we find that institutional ownership has a significant negative effect on corporate GHG emissions. We also observe that pressure-resistant institutional investors and qualified foreign institutional investors have a more substantial impact on reducing emissions. Our results suggest that institutional investors act as active monitors, influencing corporate behavior through both “exit and selection” and “voice” mechanisms. Furthermore, we find that institutional investors are more concerned with policy uncertainty risk than physical risk. These findings have implications for policymakers and investors seeking to promote sustainable development and address climate change.
| Original language | English |
|---|---|
| Article number | 102135 |
| Journal | Pacific Basin Finance Journal |
| Volume | 82 |
| Early online date | 10 Sept 2023 |
| DOIs | |
| Publication status | Published - Dec 2023 |
Bibliographical note
Funding Information:We thank Rober Faff (Editor-in-Chief), Xiaoping Cao (Associate Editor), anonymous referees and participants at 32nd Chinese Economic Association Annual Conference for their valuable comments. Dong acknowledges financial support from the National Natural Science Foundation of China (NSFC) (Grant Number: 71873103 and 72071142 ).
Keywords
- Greenhouse gas (GHG) emissions
- Institutional ownership
- Policy uncertainty
- QFIIs
Access to Document
- Ren_etal_PBFJ_Institutional_Ownership_and_VOR
This accepted author manuscript has been made open access under the University of Aberdeen Rights Retention Policy. It is available under a Creative Commons Attribution license https://creativecommons.org/licenses/by/4.0/ Final published version available at https://doi.org/10.1016/j.pacfin.2023.102135