Foreign investor and industrial pollution: Evidence from sulfur dioxide emission

Wenchuan Chen, Yuhan Xiang, Jin Liu and Yilin Zhu

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

Abstract: This paper investigates the effect of foreign investors on industrial pollution. We find that shareholdings of foreign institutional investors reduce firms’ SO2 emissions. The impact is significant only for foreign investors with frequent trades, supporting the channel of voting by foot. Further, we find that the effect of foreign investors is more pronounced in non-state-owned firms, firms with lower shares of domestic institutional investors, and firms followed by fewer analysts. We adopt the 2SLS regression with instrumental variable, different fixed effects structures, and different measurements of key variables, and find our results robust.

Keywords: Foreign investors; SO2 emissions; Voting by foot (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004676

DOI: 10.1016/j.frl.2022.103279

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