Study on the Impact of Common Institutional Ownership on Corporate Green Transformation in the Context of “Dual Carbon”: Evidence from China

Jingtai Wu, Xinyi Cai (), Fei Zuo and Yue Dong
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Jingtai Wu: School of Economics and Management, Shenyang Aerospace University, Shenyang 110136, China
Xinyi Cai: School of Economics and Management, Shenyang Aerospace University, Shenyang 110136, China
Fei Zuo: School of Economics and Management, Shenyang Aerospace University, Shenyang 110136, China
Yue Dong: School of Economics and Management, Shenyang Aerospace University, Shenyang 110136, China

Sustainability, 2023, vol. 15, issue 15, 1-20

Abstract: Corporate green transformation is important for the realization of China’s “double carbon” goal and the construction of a green economy, but existing studies only explored the role of policy factors or internal corporate factors in influencing them, ignoring the driving factors of corporate green transformation in an industry. Based on the perspective of inter-industry enterprise linkage, combined with principal–agent theory and signaling theory, this study uses the data of Shanghai and Shenzhen A-share listed companies from 2010 to 2021 and employs multiple linear regression to investigate the impact of common institutional ownership on corporate green transformation and its mechanism of action. The empirical findings show that common institutional ownership can significantly promote corporate green transformation, and the findings still hold after robustness tests. Principal–agent costs, total factor productivity, financing constraints, and business credit play a partial mediating role in this, and common institutional ownership has a better promotion effect on the enhancement of the degree of the green transformation of enterprises in non-heavily polluted industries. The results of this study not only can enrich the research on the economic consequences of joint institutional ownership but also have important guiding significance for China to promote the green transformation of enterprises and build a green economic system.

Keywords: common institutional ownership; corporate green transformation; synergistic governance effects; information sharing effects (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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