How do institutional investors evaluate ESG? Evidence from survey and archival data in China
This study examines how institutional investors evaluate corporate ESG performance in emerging markets, using surveys and archival data. We find that investors are more sensitive to ESG performance below the 60th percentile of peers, with limited sensitivity to improvements beyond this point. Both risk and stock return are more affected by ESG performance within this lower range, especially among short-term investors. The results suggest that value-driven considerations, rather than ethical motives, guide institutional investors’ attitudes toward ESG, highlighting the importance of managing ESG expectations and balancing improvements under resource constraints.
Authors
- Ying Liu (ORCID: https://orcid.org/0000-0001-9667-4904)
- Ningyue Liu
- Huijuan Cao (ORCID: https://orcid.org/0000-0001-6533-3488)
- Huiying Zhang
Institutions
- Beijing Institute of Technology (CN)
Publication Details
- Journal
- Asia-Pacific Journal of Accounting & Economics
- Published
- 2026-07-17
- DOI
- https://doi.org/10.1080/16081625.2026.2702363
- Primary Topic
- Corporate Social Responsibility Reporting
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- National Natural Science Foundation of China
- China Postdoctoral Science Foundation
- National Social Science Fund of China
- Humanities and Social Science Fund of Ministry of Education of China