Exploring the moderating effect of financial performance on the relationship between corporate environmental responsibility and institutional investors: some Egyptian evidence

wahba, hayam 


Abstract


Much of the existing literature has argued that those firms that invest in environmental initiatives attract more institutional investors. A noticeable problem with these studies is the assumption that the relationship between institutional investors and corporate environmental responsibility is a monotonic relationship that does not vary with firm financial performance. Initial findings of this study demonstrated that corporate environmental responsibility exerted a positive and significant coefficient on institutional ownership. However, when an interaction term between environmental responsibility and financial performance was included, the results verified that corporate environmental responsibility has a neutral impact on the preferences of institutional investors. Moreover, by classifying firms into two sub‐groups, according to their financial performance, environmental responsibility was found to have a positive and significant impact on institutional ownership only when financial performance is high.


Other data

Keywords corporate social responsibility, Egypt, environmental policy, financial performance, institutional investors ,ISO 14001
Issue Date Nov-2008
Publisher John Wiley & Sons, Ltd.
Source Cited by 49
Journal Corporate Social Responsibility and Environmental Management 
Series/Report no. Volume 15, Issue 6;Pages 361-371
URI http://research.asu.edu.eg/handle/123456789/2009
DOI https://doi.org/10.1002/csr.177


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