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The influence of shareholder ESG performance on corporate sustainability: Exploring the role of ownership structure

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  • Fiorillo, Paolo
  • Santilli, Gianluca

Abstract

The increasing emphasis on Environmental, Social, and Governance (ESG) criteria has raised important questions about the role of shareholders in influencing corporate sustainability. Using an international sample of 5,182 companies, we find a positive association between corporate ESG performance and shareholder ESG performance, and this is robust to endogeneity issues. This effect is stronger when the first shareholder is excluded, ownership is more dispersed and firms ensure more rights to their shareholders, suggesting that these characteristics play a key role in strengthening this link.

Suggested Citation

  • Fiorillo, Paolo & Santilli, Gianluca, 2024. "The influence of shareholder ESG performance on corporate sustainability: Exploring the role of ownership structure," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008304
    DOI: 10.1016/j.frl.2024.105800
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    Cited by:

    1. Ni, Kejin & Zhang, Rui & Tan, Lei & Lai, Xiaobing, 2024. "How ESG enhances corporate competitiveness: Mechanisms and Evidence," Finance Research Letters, Elsevier, vol. 69(PB).

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    More about this item

    Keywords

    Corporate ESG performance; Shareholder ESG performance; Ownership structure;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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