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Do state-owned institutional investors care more about ESG? Evidence from China

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  • Zeng, James Si
  • Jiang, Shaoxiang

Abstract

This article examines the question of whether state-owned institutional investors are more likely to incorporate ESG in their investment or voting decisions compared with other types of institutional investors. Using Chinese A-shares data, this article reveals that the ESG scores of listed corporations positively correlate with the shareholdings of state-owned and foreign institutional investors, after controlling for the aggregate shareholdings of all institutional investors. These findings suggest that in China, state-owned institutional investors play a leading role in promoting ESG performance, which deepens our understanding of ESG practice in China and generates important policy implications.

Suggested Citation

  • Zeng, James Si & Jiang, Shaoxiang, 2024. "Do state-owned institutional investors care more about ESG? Evidence from China," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s154461232400895x
    DOI: 10.1016/j.frl.2024.105865
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