Abstract
Institutional investors generally promote better sustainability disclosure and performance quality, which emphasize environment, social, and governance (ESG) development. Utilizing the SASB standards that improve the financial materiality of sustainability information, we find that institutional investors in Taiwan foster both material and immaterial ESG disclosure and performance. Thus, institutional investors seem to target the common good and follow the stewardship code instead of focusing only on ESG performance that closely relates to firm value. Our findings are driven by domestic rather than foreign institutional investors, suggesting that domestic institutions enjoy some information advantage and therefore drive ESG improvements more efficiently.
Original language | English |
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Article number | 102382 |
Journal | Pacific Basin Finance Journal |
Volume | 85 |
DOIs | |
State | Published - Jun 2024 |
Keywords
- CSR
- ESG
- Institutional investors
- Stewardship