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Institutional investor stewardship and material sustainability information: Evidence from Taiwan

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  • Yang, Sharon S.
  • Huang, Jr-Wei
  • Li, Wei-Hsien

Abstract

Institutional investors generally promote better sustainability disclosure and performance quality, which emphasize environment, social, and governance (ESG) development. Utilizing the SASB standards that improve the financial materiality of sustainability information, we find that institutional investors in Taiwan foster both material and immaterial ESG disclosure and performance. Thus, institutional investors seem to target the common good and follow the stewardship code instead of focusing only on ESG performance that closely relates to firm value. Our findings are driven by domestic rather than foreign institutional investors, suggesting that domestic institutions enjoy some information advantage and therefore drive ESG improvements more efficiently.

Suggested Citation

  • Yang, Sharon S. & Huang, Jr-Wei & Li, Wei-Hsien, 2024. "Institutional investor stewardship and material sustainability information: Evidence from Taiwan," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x24001331
    DOI: 10.1016/j.pacfin.2024.102382
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    References listed on IDEAS

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    More about this item

    Keywords

    Institutional investors; Stewardship; CSR; ESG;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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