Institutional ownership and corporate greenhouse gas emissions: The evidence from China

Ren, Xingzi; Dong, Yizhe; Guo, Jie Michael; Liu, Yaodong

Abstract

This paper examines the impact of corporate ownership structure on greenhouse gas (GHG) emissions in China, with a focus on the role of institutional investors. Using data on Chinese listed companies, we find that institutional ownership has a significant negative effect on corporate GHG emissions. We also observe that pressure-resistant institutional investors and qualified foreign institutional investors have a more substantial impact on reducing emissions. Our results suggest that institutional investors act as active monitors, influencing corporate behavior through both “exit and selection” and “voice” mechanisms. Furthermore, we find that institutional investors are more concerned with policy uncertainty risk than physical risk. These findings have implications for policymakers and investors seeking to promote sustainable development and address climate change.

Citation

Ren, X., Dong, Y., Guo, J. M., & Liu, Y. (2023). Institutional ownership and corporate greenhouse gas emissions: The evidence from China. Pacific-Basin Finance Journal, 82, Article 102135. https://doi.org/10.1016/j.pacfin.2023.102135

• Journal Article Type: Article
• Acceptance Date: Aug 31, 2023
• Online Publication Date: Sep 1, 2023
• Publication Date: 2023-12
• Deposit Date: Sep 14, 2023
• Publicly Available Date: Mar 2, 2025
• Journal: Pacific-Basin Finance Journal
• Print ISSN: 0927-538X
• Electronic ISSN: 1879-0585
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 82
• Article Number: 102135
• DOI: https://doi.org/10.1016/j.pacfin.2023.102135
• Public URL: https://durham-repository.worktribe.com/output/1737331