Do Long-Term Institutional Investors Promote CSR Activities?

Institutional investors have in recent years become the largest equity holders in the U.S., owning about 80 percent of the market value of S&P 500 index stocks and more than 70 percent  of the shares of the 10 largest U.S. firms (Mcgrath, 2017). As a result, institutional investors’ power and influence on corporate decision-making have grown,  increasing concerns about whether they actively monitor firms and exercise stewardship to enhance firms’ long-term sustainable value.

Do institutional investors act in short-sited ways, interested mainly in boosting short-term share prices, or do they encourage management to invest for the long-term? The answer, and … Read more