Are Institutional Investors Concerned about Corporate Social Responsibility Risk? ()
ABSTRACT
This paper uses the data of
the RepRisk database to construct corporate social responsibility risk
indicators (CSR Risk), and examines the
relationship between corporate social responsibility risk and institutional
holdings. The study found that there is a significant negative correlation
between the institutional investor’s shareholding and corporate social
responsibility risk, and the above relationship is even more pronounced in
regions with a higher degree of marketization, state-owned listed companies,
and companies with better operating performance. In further analysis, this
article finds that corporate social responsibility risk will negatively affect
earnings sustainability and corporate value, which means that investors
investing in companies with higher social responsibility risk will reduce the
investment value.
Share and Cite:
Chen, Y. (2020) Are Institutional Investors Concerned about Corporate Social Responsibility Risk?.
Open Journal of Social Sciences,
8, 427-454. doi:
10.4236/jss.2020.83037.