Accessibility navigation


Investment horizon and corporate social performance: the virtuous circle of long-term institutional ownership and responsible firm conduct

Oikonomou, I., Yin, C. and Zhao, L. (2020) Investment horizon and corporate social performance: the virtuous circle of long-term institutional ownership and responsible firm conduct. European Journal of Finance, 26 (1). pp. 14-40. ISSN 1466-4364

[img] Text - Accepted Version
· Restricted to Repository staff only until 1 March 2021.

1MB

It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1080/1351847X.2019.1660197

Abstract/Summary

We investigate the relationship between corporate social performance and institutional ownership. We distinguish between long-term and short-term institutional investors using holdings-based measures which directly capture the investment horizon of each institution. Our analysis shows that long term institutional investment is positively related to corporate social performance(mainly by an avoidance of investing in firms with significant controversies) whereas short-term institutional investment is negatively related to corporate social performance. Further investigation reveals that increased holdings of a firm by long-term investors are positively associated with its future corporate social performance. Hence, we provide evidence of a ‘virtuous circle’ between long term investment and social responsibility.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > ICMA Centre
ID Code:85909
Publisher:Taylor & Francis

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation