How Does a Regulatory Minority Shareholder Influence the ESG Performance? A Quasi-Natural Experiment

Di Song, Canyu Xu (), Zewei Fu and Chao Yang
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Di Song: Business School, China University of Political Science and Law, Beijing 100088, China
Canyu Xu: Business School, East China University of Science and Technology, Shanghai 200237, China
Zewei Fu: Business School, China University of Political Science and Law, Beijing 100088, China
Chao Yang: School of Accountancy, Beijing Wuzi University, Beijing 101149, China

Sustainability, 2023, vol. 15, issue 7, 1-22

Abstract: Based on China’s newly established Securities Investor Services Center (CSISC), a minority shareholder protection mechanism, we investigated how the CSISC shareholder influences the ESG performance of listed companies. Using a difference-in-differences analysis for a sample of Chinese listed companies during 2013–2017, we found that the pilot reform of CSISC shareholding has a positive influence on the ESG performance of listed companies. We also found that this effect exists in large companies and in companies in non-high-polluting industries. Besides, analysts’ attention, external auditing quality, institutional shareholding, and highly-developed market intermediary and legal systems can strengthen the effect of CSISC shareholding on corporate ESG performance. Our findings inspire regulators in emerging markets to establish suitable mechanisms to protect minority shareholder rights in the long run.

Keywords: China Securities Investor Services Center; minority shareholder protection; ESG performance; supervision capability; information transparency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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