학회소식
[2020년 제 5차] Are Green Investors Green-Inducing? A Demand System Approach
작성자 : 관리자
조회수 : 46
게시일 :
2020-12-11
Despite the growing interest in green investing among academics and industry professionals
alike, there is little consensus on whether it successfully incentivizes firms to adopt eco-friendly
business practices. Using the equity holdings of institutional investors and the “demand system
approach” to asset pricing, we provide evidence that institutional demand for greener stocks
encourages firms to improve their environmental performances. Specifically, we devise and estimate
a firm-level quantity, institutional pressure for greenness, that measures the price pressure
a firm receives from its institutional owners. We find that this quantity has a positive and significant
relationship with future improvement in a firm’s environmental performance. Together
with results from placebo tests, we conclude that green investors, those with high portfolio-level
environment scores, are not necessarily green-inducing investors, those who encourage better environmental
performance. Instead, green-inducing investors are institutions who contribute to
higher institutional pressure, i.e. investors who are price-inelastic and display a positive portfolio
tilt towards greener assets.
