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The impact of introducing strategic investors on corporate ESG performance—Empirical evidence from private placements in China

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  • Liu, Jia
  • Jin, Yu
  • Xu, Chengkai

Abstract

Based on the data of A-share listed companies from 2009 to 2019, this paper explores the impact of introducing strategic investors on corporate ESG performance using the DID method. The results show that the introduction of strategic investors can enhance corporate ESG performance; two impact mechanisms involving internal governance and financing constraints are verified. The effect of introducing strategic investors on corporate ESG performance is more obvious in private enterprises and firms with better equity checks and balances. In addition, corporate ESG performance has an enhancing effect on corporate stock returns, the introduction of strategic investors can deepen this effect.

Suggested Citation

  • Liu, Jia & Jin, Yu & Xu, Chengkai, 2024. "The impact of introducing strategic investors on corporate ESG performance—Empirical evidence from private placements in China," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013266
    DOI: 10.1016/j.frl.2024.106297
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    More about this item

    Keywords

    Strategic investors; corporate ESG performance; Financing constraints; Internal governance;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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