Does Mutual Fund Ownership Increase Corporate Environmental Spending?

TY - JOUR

T1 - Does Mutual Fund Ownership Increase Corporate Environmental Spending?

AU - Ashton, John

AU - Wang, Yang

AU - Zhang, Yifei

N1 - © 2024 Elsevier Inc. This is an author-produced version of the published paper. Uploaded in accordance with the University’s Research Publications and Open Access policy.

PY - 2024/8/16

Y1 - 2024/8/16

N2 - This paper examines how mutual fund ownership influences corporate environmental spending, and the channels through which this impact operates. Using a unique hand collected dataset of Chinese listed companies between 2011 and 2018, we report mutual fund investment is associated with significantly increased corporate environmental spending. This influence is moderated by institutional factors including state-owned enterprises and stronger legal environments. We also assess the environmental awareness associated with environmental spending through examining the number of ‘green’ questions raised by investors and the ‘green’ credentials of board members. Moreover, we find that mutual funds with green investment objectives have significantly increased corporate environmental spending levels. We conclude mutual find ownership has a positive influence on environmental spending and should be encouraged within China.

AB - This paper examines how mutual fund ownership influences corporate environmental spending, and the channels through which this impact operates. Using a unique hand collected dataset of Chinese listed companies between 2011 and 2018, we report mutual fund investment is associated with significantly increased corporate environmental spending. This influence is moderated by institutional factors including state-owned enterprises and stronger legal environments. We also assess the environmental awareness associated with environmental spending through examining the number of ‘green’ questions raised by investors and the ‘green’ credentials of board members. Moreover, we find that mutual funds with green investment objectives have significantly increased corporate environmental spending levels. We conclude mutual find ownership has a positive influence on environmental spending and should be encouraged within China.

U2 - 10.1016/j.jbusres.2024.114878

DO - 10.1016/j.jbusres.2024.114878

M3 - Article

SN - 0148-2963

VL - 184

JO - JOURNAL OF BUSINESS RESEARCH

JF - JOURNAL OF BUSINESS RESEARCH

M1 - 114878

ER -