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Does corporate social responsibility affect the institutional ownership of firms in the hospitality and tourism industry?

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  • Danielle Lyssimachou
  • Pawel Bilinski

Abstract

As hospitality and tourism (H&T) businesses mature, they often seek institutional equity financing to support their growth. Capital intensive H&T firms, such as cruise operators, casinos and large restaurant and hotel chains, continuously rely on institutional capital to fund their operations. This study examines which corporate social responsibility dimensions affect H&T firms’ ability to attract institutional equity capital providers. We document that firms with better social and governance performance have higher institutional ownership, particularly by investors focused on long-term growth and value creation, such as dedicated institutional investors, domestic investors and blockholders. Community and environmental performance do not increase institutional holdings.

Suggested Citation

  • Danielle Lyssimachou & Pawel Bilinski, 2023. "Does corporate social responsibility affect the institutional ownership of firms in the hospitality and tourism industry?," Tourism Economics, , vol. 29(4), pages 853-879, June.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:4:p:853-879
    DOI: 10.1177/13548166211069899
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