Ownership Comes with Responsibility – the Impact of Ownership Characteristics on CSR

56 Pages Posted: 15 Jun 2020 Last revised: 27 Aug 2020

See all articles by Lukas Benz

Lukas Benz

University of Augsburg

Stefan Paulus

University of Augsburg - Department of Finance and Banking

Martin Rohleder

University of Augsburg

Marco Wilkens

University of Augsburg

Date Written: Augsust 26, 2020

Abstract

This article provides a novel methodology to investigate the influence of share ownership on corporate decision making. Quantifying the characteristics of firms’ owners based on their measurable investment habits enables us to assess their predominant preferences. We demonstrate that a preference by owners for eco-social investments is a positive force in their firms’ CSR performance. In contrast, firms exhibit a lower CSR performance when owners show a higher degree of heterogeneity in terms of eco-social preferences. Furthermore, we find that universal as well as long-term ownerships significantly encourage CSR, hence confirming prominent theoretical concepts.

Keywords: Ownership, Institutional Investor, Shareholder Engagement, ESG, Corporate Social Responsibility

JEL Classification: G11, G15, G23, G30, M14

Suggested Citation

Benz, Lukas and Paulus, Stefan and Rohleder, Martin and Wilkens, Marco, Ownership Comes with Responsibility – the Impact of Ownership Characteristics on CSR (Augsust 26, 2020). Available at SSRN: https://ssrn.com/abstract=3606143 or http://dx.doi.org/10.2139/ssrn.3606143

Lukas Benz

University of Augsburg ( email )

Universitätsstr. 2
Augsburg, 86159
Germany

Stefan Paulus

University of Augsburg - Department of Finance and Banking ( email )

Universitaetsstr. 2
Augsburg, 86135
Germany

Martin Rohleder (Contact Author)

University of Augsburg ( email )

Universitaetsstr. 16
Augsburg, 86159
Germany
+49 821 598 4120 (Phone)

Marco Wilkens

University of Augsburg ( email )

Universitaetsstr. 16
Augsburg, 86159
Germany
+49 821 598 4124 (Phone)
+49 821 598 4223 (Fax)

HOME PAGE: http://www.wiwi.uni-augsburg.de/bwl/wilkens/team/wilkens_marco/

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