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Institutional investors and corporate environmental costs: The roles of investment horizon and investor origin.
- Source :
- European Financial Management; Mar2024, Vol. 30 Issue 2, p727-769, 43p
- Publication Year :
- 2024
-
Abstract
- Using an international data set that quantifies corporate environmental costs, we analyze the influence of institutional investor ownership, particularly investment horizon and investor origin, on the monetized environmental impact generated by their investee firms. Institutional investor ownership is negatively related to corporate environmental costs. This effect is driven by longāterm foreign institutional investors, especially investors from advanced economies. Corporate environmental costs are negatively correlated with firm valuation and positively correlated with the cost of equity. Since corporate environmental costs are not reflected in environmental, social and governance ratings, our results shed new light on the role of institutional investors in shaping corporate environmental impact. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13547798
- Volume :
- 30
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- European Financial Management
- Publication Type :
- Academic Journal
- Accession number :
- 175826618
- Full Text :
- https://doi.org/10.1111/eufm.12444