Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7366316 | Journal of the Japanese and International Economies | 2018 | 12 Pages |
Abstract
In 2006, the United Nations Global Compact launched Principles for Responsible Investment (PRI), and the Japanese Ministry of Environment advocated financial mechanisms for environmental protection. We find that institutional ownership in 2005 is positively related to the probability of subsequent improvements in environment ratings for Japanese firms. The result is especially evident for domestic institutional shareholders who signed up for the PRI. These results suggest that soft laws aimed at institutional investors can enhance responsible business practices and that national government initiatives play an effective role. Finally, improved ratings in the environment category do not harm shareholder wealth.
Related Topics
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Economics and Econometrics
Authors
Elizabeth Marie Motta, Konari Uchida,