Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/290192 
Year of Publication: 
2023
Citation: 
[Journal:] European Financial Management [ISSN:] 1468-036X [Volume:] 30 [Issue:] 2 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2023 [Pages:] 727-769
Publisher: 
Wiley, Hoboken, NJ
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 long-term 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
Subjects: 
corporate environmental costs
cost of equity
foreign investors
institutional investors
investment horizon
sustainability
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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