Do sovereign wealth funds value ESG engagement? Evidence from target firm's CSR performance

Liyan Dai, Chengxuan Song, Yu You and Wenqiao Zhang

Finance Research Letters, 2022, vol. 50, issue C

Abstract: This paper investigates whether Sovereign Wealth Funds (SWFs) value target firm's ESG engagement when making investment decisions. Using CSR scores as a measurement for ESG engagement, we find robust evidence that SWFs are more likely to invest in firms with a higher CSR score. Furthermore, firms with higher CSR scores attract more SWFs to invest. Our study identifies a possible determinant in the investment decision making process of SWFs.

Keywords: Sovereign wealth funds; Corporate social responsibility; ESG investments (search for similar items in EconPapers)
JEL-codes: G0 G20 G3 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322004287
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004287

DOI: 10.1016/j.frl.2022.103226

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().