Building Eco-friendly Corporations: The Role of Minority Shareholders

Shouyu Yao (), Yuying Pan (), Lu Wang (), Ahmet Sensoy and Feiyang Cheng ()
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Shouyu Yao: Tianjin University
Yuying Pan: Shandong University of Finance and Economics
Lu Wang: Zhejiang University of Finance and Economics
Feiyang Cheng: Tianjin University

Journal of Business Ethics, 2023, vol. 182, issue 4, No 3, 933-966

Abstract: Abstract Based on China’s mandatory requirement for listed firms to implement online voting in their annual general shareholder meetings, we investigate whether and how minority shareholders influence corporate environmental performance (CEP). We use the difference-in-difference approach and find that the implementation of online voting promotes minority shareholders’ participation in shareholder meetings, which, in turn, leads to improved CEP of listed firms. We discover that “local pollution” exposure and “the increasing awareness of listed firms’ environmental risks” are the main motives of minority shareholders concerning listed firms’ environmental performance. Furthermore, we find that the minority shareholders improve CEP of listed firms through influencing groups with greater bargaining power.

Keywords: Minority shareholders’ activism; Online voting; Corporate environmental performance; Bargaining power (search for similar items in EconPapers)
JEL-codes: G32 G34 G38 M14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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DOI: 10.1007/s10551-022-05291-y

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