Does institutional commitment affect ESG performance of firms? Evidence from the United Nations principles for responsible investment

Junkai Wang, Baolei Qi, Yan Li, Muhammad Istiaque Hossain and Haowen Tian

Energy Economics, 2024, vol. 130, issue C

Abstract: Based on the sample of institutions in China that signed the United Nations Principles of Responsible Investment over the period from 2012 to 2021, we study whether institutional commitment improve their environmental, social, and governance performance. The results show that institutional commitment has better environmental, social, and governance performance on its investment targets. After a series of robustness tests such as instrumental variable method and propensity score matching method, the main regression results remain unchanged. In further analysis, we find that this relationship is more pronounced when institutions are controlled by the state and have more media coverage. This study provides a new dimension for the firms to enhance environmental, social, and governance performance and also provides a theoretical basis for United Nations Principles of Responsible Investment to further expand its scope of influence.

Keywords: PRI; ESG performance; State-owned; Media attention (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:130:y:2024:i:c:s0140988324000100

DOI: 10.1016/j.eneco.2024.107302

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