Institutional ownership and corporate greenhouse gas emissions: The evidence from China

Xingzi Ren, Yizhe Dong, Jie Michael Guo, Yaodong Liu

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

This paper examines the impact of corporate ownership structure on greenhouse gas (GHG) emissions in China, with a focus on the role of institutional investors. Using data on Chinese listed companies, we find that institutional ownership has a significant negative effect on corporate GHG emissions. We also observe that pressure-resistant institutional investors and qualified foreign institutional investors have a more substantial impact on reducing emissions. Our results suggest that institutional investors act as active monitors, influencing corporate behavior through both “exit and selection” and “voice” mechanisms. Furthermore, we find that institutional investors are more concerned with policy uncertainty risk than physical risk. These findings have implications for policymakers and investors seeking to promote sustainable development and address climate change.
Original languageEnglish
Article number102135
Pages (from-to)1-17
Number of pages17
JournalPacific-Basin Finance Journal
Early online date1 Sept 2023
Publication statusPublished - Dec 2023

Keywords / Materials (for Non-textual outputs)

  • greenhouse gas (GHG) emissions
  • institutional ownership
  • QFIIs
  • policy uncertainty


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