Institutional Ownership and Corporate Sustainability Performance—A Meta‐Analysis

ABSTRACT This study investigates the relationship between institutional ownership (IO) and corporate sustainability performance (SP), addressing inconsistent findings in prior research and clarifying the boundary conditions of this relationship by testing a defined set of potential moderators. Drawing on a comprehensive meta‐analysis of 116 empirical studies, we find evidence of a bidirectional positive association: higher IO is linked to superior subsequent SP, and prior superior SP attracts greater IO. Furthermore, country‐level institutional factors significantly moderate the IO–SP relationship, and temporal factors exert additional moderating effects. These results support arguments from agency theory and stakeholder salience theory.