IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-23-00442.html
   My bibliography  Save this article

Institutional investors' ownership in the oil and gas industry: evidence from network analysis

Author

Listed:
  • João Victor Machado

    (University of Campinas (UNICAMP))

  • Fernando Sarti

    (University of Campinas (UNICAMP))

  • Rodrigo Lanna Franco Silveira

    (University of Campinas (UNICAMP))

  • Camila Veneo Campos Fonseca

    (University of Campinas (UNICAMP))

Abstract

This study investigates the presence of institutional investors in the ownership structure of oil and gas (O&G) corporations during the 2010s. By analyzing a sample of the 50 largest O&G companies, we use a two-mode network methodology to explore the dynamics of investor participation. The results show an increase in institutional investors' ownership share, rising from 23% to 29% over the decade. Furthermore, institutional investors exhibit high centrality within the ownership network, emphasizing their strategic importance. In addition, a substantial portion of investments is concentrated among major money managers, particularly those associated with U.S. companies. This work contributes to understanding the strategic role of institutional investors regarding carbon-intensive assets in a period characterized by changes in the energy paradigm.

Suggested Citation

  • João Victor Machado & Fernando Sarti & Rodrigo Lanna Franco Silveira & Camila Veneo Campos Fonseca, 2024. "Institutional investors' ownership in the oil and gas industry: evidence from network analysis," Economics Bulletin, AccessEcon, vol. 44(3), pages 847-864.
    • Handle: RePEc:ebl:ecbull:eb-23-00442
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I3-P64.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dirk Schoenmaker & Willem Schramade, 2019. "Investing for long-term value creation," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 9(4), pages 356-377, October.
    2. Mäkitie, Tuukka & Normann, Håkon E. & Thune, Taran M. & Sraml Gonzalez, Jakoba, 2019. "The green flings: Norwegian oil and gas industry’s engagement in offshore wind power," Energy Policy, Elsevier, vol. 127(C), pages 269-279.
    3. Ren, Xingzi & Dong, Yizhe & Guo, Jie Michael & Liu, Yaodong, 2023. "Institutional ownership and corporate greenhouse gas emissions: The evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    4. Alan D. Crane & Sébastien Michenaud & James P. Weston, 2016. "Editor's Choice The Effect of Institutional Ownership on Payout Policy: Evidence from Index Thresholds," The Review of Financial Studies, Society for Financial Studies, vol. 29(6), pages 1377-1408.
    5. Giulia Rotundo & Anna D’Arcangelis, 2010. "Ownership and control in shareholding networks," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 5(2), pages 191-219, December.
    6. Kim, Hyun-Dong & Kim, Taeyeon & Kim, Yura & Park, Kwangwoo, 2019. "Do long-term institutional investors promote corporate social responsibility activities?," Journal of Banking & Finance, Elsevier, vol. 101(C), pages 256-269.
    7. Hossein Dastkhan & Naser Shams Gharneh, 2016. "Determination of Systemically Important Companies with Cross-Shareholding Network Analysis: A Case Study from an Emerging Market," IJFS, MDPI, vol. 4(3), pages 1-17, June.
    8. Aymen Ajina & Faten Lakhal & Danielle Sougné, 2015. "Institutional investors, information asymmetry and stock market liquidity in France," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 11(1), pages 44-59, February.
    9. Dyck, Alexander & Lins, Karl V. & Roth, Lukas & Wagner, Hannes F., 2019. "Do institutional investors drive corporate social responsibility? International evidence," Journal of Financial Economics, Elsevier, vol. 131(3), pages 693-714.
    10. Hanady Bataineh, 2021. "The impact of ownership structure on dividend policy of listed firms in Jordan," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1863175-186, January.
    11. Fichtner, Jan & Heemskerk, Eelke M. & Garcia-Bernardo, Javier, 2017. "Hidden power of the Big Three? Passive index funds, re-concentration of corporate ownership, and new financial risk†," Business and Politics, Cambridge University Press, vol. 19(2), pages 298-326, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azar, José & Duro, Miguel & Kadach, Igor & Ormazabal, Gaizka, 2021. "The Big Three and corporate carbon emissions around the world," Journal of Financial Economics, Elsevier, vol. 142(2), pages 674-696.
    2. Ashton, John & Wang, Yang & Zhang, Yifei, 2024. "Does mutual fund ownership increase corporate environmental spending?," Journal of Business Research, Elsevier, vol. 184(C).
    3. Zhou, Taiyun & Liu, Mingxuan & Zhang, Xiyu & Qi, Zheng & Qin, Ni, 2024. "Does institutional ownership affect corporate social responsibility? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 84-98.
    4. Dasgupta, Amil & Fos, Vyacheslav & Sautner, Zacharias, 2021. "Institutional investors and corporate governance," LSE Research Online Documents on Economics 112114, London School of Economics and Political Science, LSE Library.
    5. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    6. Michele Fioretti & Victor Saint-Jean & Simon C Smith, 2022. "The Voice: The Shareholders' Motives Behind Corporate Donations during COVID-19 (former title: Selfish Shareholders: Corporate Donations during COVID-19)," SciencePo Working papers Main hal-03386585, HAL.
    7. Patrick Velte, 2023. "Which institutional investors drive corporate sustainability? A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 42-71, January.
    8. Maximilian Focke, 2022. "Do sustainable institutional investors influence senior executive compensation structures according to their preferences? Empirical evidence from Europe," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1109-1121, September.
    9. Haozhe Han, 2023. "Does increasing the QFII quota promote Chinese institutional investors to drive ESG?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 30(6), pages 1627-1643, November.
    10. Chen, Tao & Dong, Hui & Lin, Chen, 2020. "Institutional shareholders and corporate social responsibility," Journal of Financial Economics, Elsevier, vol. 135(2), pages 483-504.
    11. Erhemjamts, Otgontsetseg & Huang, Kershen, 2019. "Institutional ownership horizon, corporate social responsibility and shareholder value," Journal of Business Research, Elsevier, vol. 105(C), pages 61-79.
    12. Eunice S. Khoo & Li Chen & Gary S. Monroe, 2023. "Shareholder election of CSR committee members and its effects on CSR performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 50(3-4), pages 716-763, March.
    13. Lifang Chen & Minghui Han & Yong Li & William L. Megginson & Hao Zhang, 2022. "Foreign ownership and corporate excess perks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 72-93, February.
    14. Wang, Aoran & Luo, Xian & Zeng, Ying & Zhang, Hao, 2022. "Foreign ownership and corporate philanthropy," Finance Research Letters, Elsevier, vol. 46(PB).
    15. Xuezhou Zhao & Libing Fang & Ke Zhang, 2022. "How Foreign Institutional Shareholders' Religious Beliefs Affect Corporate Social Performance?," Journal of Business Ethics, Springer, vol. 178(2), pages 377-401, June.
    16. Buchanan, Bonnie G. & Cao, Cathy Xuying & Wang, Shuhui, 2021. "Corporate social responsibility and inside debt: The long game," International Review of Financial Analysis, Elsevier, vol. 78(C).
    17. Roman Kräussl & Tobi Oladiran & Denitsa Stefanova, 2024. "A review on ESG investing: Investors’ expectations, beliefs and perceptions," Journal of Economic Surveys, Wiley Blackwell, vol. 38(2), pages 476-502, April.
    18. Germán Gutiérrez & Thomas Philippon, 2017. "Investmentless Growth: An Empirical Investigation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(2 (Fall)), pages 89-190.
    19. Cheng, Xin & (Helen) Wang, He & Wang, Xianjue, 2022. "Common institutional ownership and corporate social responsibility," Journal of Banking & Finance, Elsevier, vol. 136(C).
    20. He, Wen & Mi, Lin, 2022. "Institutional investors’ horizon and equity-financed payouts," Journal of Banking & Finance, Elsevier, vol. 134(C).

    More about this item

    Keywords

    oil and gas industry; institutional investors; ownership; networks.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-23-00442. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.