Institutional investors and ESG preferences

Florencio Lopez de Silanes, Joseph A. McCahery, and Paul C. Pudschedl

We study the effect of environmental, social and governance (ESG) scores on the portfolio allocations of institutional investors. Using a unique data set, we find that institutional investor holdings (as measured by 13F filings) are strongly driven by the ESG quality of companies. While investors are driven to add high quality ESG companies to their portfolios, there is a negative relationship to ESG when it comes to taking large ownership stakes. Blockholders appear much less motivated by ESG scores. Evaluating individual ESG scores, we find that the individual ESG governance score has the highest impact on institutional investor holdings

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Year of publication:	[2022]
Authors:	López-de-Silanes, Florencio ; McCahery, Joseph A. ; Pudschedl, Paul C.
Publisher:	[Tilburg] : [CentER, Center for Economic Research]
Subject:	ESG \| Sustainable Finance \| Institutional Investors \| Financial Performance \| Disclosure \| Institutioneller Investor \| Institutional investor \| Nachhaltige Kapitalanlage \| Sustainable investment \| Corporate Social Responsibility \| Corporate social responsibility \| Unternehmenspublizität \| Corporate disclosure \| Welt \| World \| Corporate Governance \| Corporate governance

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Extent:	1 Online-Ressource (circa 52 Seiten)
Series:	TILEC discussion paper. - Tilburg : [Verlag nicht ermittelbar], ISSN 2213-9419, ZDB-ID 2813346-8. - Vol. [DP 2022, 003]
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.4050851 [DOI]
Classification:	G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies ; G15 - International Financial Markets ; G23 - Pension Funds; Other Private Financial Institutions ; G32 - Financing Policy; Capital and Ownership Structure ; M1 - Business Administration
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012939445