| dc.description.abstract | The main purpose of this research examines whether the ownership of institutional investors can affect the performance of corporate social responsibility of firms. We collect the ESG scores of Taiwan companies scored by Refinitiv in 2010-2017, and regard the ownership of institutional investors as the main observed variable. This research refers to Dyck et al. (2019), and the primary difference is that the institutional investors are further divided into domestic and foreign investors for analysis, and then the sample is divided into three industries: technology, finance and other industries to discuss. In addition, this paper adds three risk measurement as control variables. Finally, the paper compare companies with high ESG scores to those with low ESG scores.
The finding of this paper is that institutional holders really have a positive influence on the ESG score of the firms. In additions to the overall ESG score, it also shows significant results for social pillar score indicating that institutional investors focus on the contribution of firms to society. After splitting institutional investors into domestic investors and foreign investors, it was observed that foreign institutional investors have larger impact than domestic institutional investors. It also shows that in the technology industry and other industries, institutional investors have a significant relationship with the ESG score. However, in the results of the financial industry, it is found that the relationship between institutional investors and ESG score is not significant. It indicates that under different industries, the impact of institutional investors is different. Finally, this study discover that institutional investors have less influence on companies with high ESG scores, while having positively significant impact on companies with low ESG scores. | en_US |