RT Article
T1 Is Institutional Ownership Related to Corporate Social Responsibility? The Nonlinear Relation and Its Implication for Stock Return Volatility
JF Journal of business ethics
VO 146
IS 1
SP 77
OP 109
A1 Harjoto, Maretno
A1 Jo, Hoje
A1 Kim, Yongtae
LA English
PB Springer Science + Business Media B. V
YR 2017
UL https://ixtheo.de/Record/1785662716
AB This study examines the relation between corporate social responsibility (CSR) and institutional investor ownership, and the impact of this relation on stock return volatility. We find that institutional ownership does not strictly increase or decrease in CSR; rather, institutional ownership is a concave function of CSR. This evidence suggests that institutional investors do not see CSR as strictly value-enhancing activities. Institutional investors adjust their percentage of ownership when CSR activities go beyond the perceived optimal level. Employing the path analysis, we also examine the mediating effect of institutional ownership on the relation between CSR and stock return volatility. We find that CSR decreases stock return volatility at a decreasing rate through its effect on institutional ownership. Our results remain robust under several different CSR measures and estimation methods.
K1 Socially Responsible Investing
K1 Stock return volatility
K1 Institutional ownership
K1 Corporate Social Responsibility
DO 10.1007/s10551-015-2883-y