Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)

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Does Institutional Investor Shareholding Enhance Firms’ True ESG Performance? ——A Study Based on Negative ESG Events of Shanghai and Shenzhen A-share Listed Companies

Authors
Guohui Hu1, Qian Cheng1, *
1Wuhan University of Technology, Wuhan, 430070, China
*Corresponding author. Email: 2518722320@qq.com
Corresponding Author
Qian Cheng
Available Online 5 May 2025.
DOI
10.2991/978-94-6463-702-1_67How to use a DOI?
Keywords
institutional investors; real ESG performance; financing constraints
Abstract

Investors’ focus on corporate sustainability has fuelled the rapid development of ESG ratings, and many scholars use ESG ratings as a measure of corporate ESG performance. However, there is some controversy about whether ESG ratings based on enterprises’ self-disclosed ESG reports can represent enterprises’ true ESG performance. This paper explores whether institutional investor shareholding improves firms’ true ESG performance from the perspective of firms’ negative ESG events. It is found that institutional investor shareholding can reduce the level of corporate ESG negative events, i.e., improve firms’ true ESG performance. The mechanism study suggests that institutional investor shareholding improves firms’ true ESG performance by alleviating firms’ financing constraints and thus suppressing their strategic ESG behavioural motives.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
5 May 2025
ISBN
978-94-6463-702-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-702-1_67How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Guohui Hu
AU  - Qian Cheng
PY  - 2025
DA  - 2025/05/05
TI  - Does Institutional Investor Shareholding Enhance Firms’ True ESG Performance? ——A Study Based on Negative ESG Events of Shanghai and Shenzhen A-share Listed Companies
BT  - Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
PB  - Atlantis Press
SP  - 632
EP  - 638
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-702-1_67
DO  - 10.2991/978-94-6463-702-1_67
ID  - Hu2025
ER  -