Institutional Investors and Corporate Social Responsibility: Evidence from China

Wanfang Xiong, Mengming Dong, Cheng Xu*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)


In this paper, we examine the effect of institutional investors on corporate social responsibility (CSR). We use data on Chinese listed firms from 2010–2018 and find that (1) institutional investors significantly enhance CSR; (2) institutional investors are more inclined to affect CSR engagement through improving firms’ information transparency, internal control, and making more site visits; (3) this positive relationship is more profound for state-owned enterprises, politically connected firms, and firms with low financial constraint; and (4) only long-term institutional investors can drive CSR performance. We use three instrumental variables to address endogenous concerns and the results still hold. Overall, our findings indicate that institutional investors can have a social effect.

Original languageEnglish
Pages (from-to)3281-3292
Number of pages12
JournalEmerging Markets Finance and Trade
Issue number10
Publication statusPublished - Jun 2022


  • China
  • Corporate governance
  • corporate social responsibility
  • G30
  • institutional ownership
  • M14


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