@article{e1022d4064ff4a4096cd3c39b73d9cdb,
title = "Does social performance influence breadth of ownership?",
abstract = "This study examines the hitherto unexplored question of whether and how a firm's social performance influences the breadth of that firm's share ownership. We predict and find that firms with higher corporate social responsibility (CSR) ratings attract more institutional investors (especially long-term, low-stake and green institutional investors) and more individual investors. This finding is consistent with the notion that investors are more interested in firms with higher CSR ratings and thus prefer to hold stocks of such firms. We also find that firms with higher CSR ratings are associated with higher stock liquidity, lower cost of equity capital, more equity and debt issuance, and greater investment, and that sin stocks are associated with a lower investor base, which further corroborates our prediction. Our results are robust to potential endogeneity, the use of alternative model specifications, and an alternative proxy for CSR performance.",
keywords = "breadth of ownership, corporate social responsibility (CSR), green investor, investor base, liquidity, stock",
author = "Kim, {Jeong Bon} and Bing Li and Zhenbin Liu",
note = "Funding Information: This paper has benefited from the helpful comments of the Editor (Peter Clarkson) and an anonymous referee. We are grateful for comments and suggestions from Yuyan Guan, Jay Lee, Yue Li, Shangkun Liang, Haina Shi, Liandong Zhang, and Ph.D. seminar/workshop participants from City University of Hong Kong and Fudan University. We acknowledge financial support for this project from a postdoctoral fellowship grant from the City University of Hong Kong. J.-B. Kim and B. Li acknowledge partial financial support for this project from the Research Grants Council of the Hong Kong Special Administrative Region, China (Grant no. CityU 144551 and Grant no. CityU 199113, respectively). Z.B. Liu acknowledges full financial support for this project from the Faculty Research Grant of the Hong Kong Baptist University (Grant no. FRG2/17-18/010). The usual disclaimer applies. (Paper received May 2017, revised version accepted June 2018) Funding Information: This paper has benefited from the helpful comments of the Editor (Peter Clarkson) and an anonymous referee. We are grateful for comments and suggestions from Yuyan Guan, Jay Lee, Yue Li, Shangkun Liang, Haina Shi, Liandong Zhang, and Ph.D. seminar/workshop participants from City University of Hong Kong and Fudan University. We acknowledge financial support for this project from a postdoctoral fellowship grant from the City University of Hong Kong. J.-B. Kim and B. Li acknowledge partial financial support for this project from the Research Grants Council of the Hong Kong Special Administrative Region, China (Grant no. CityU 144551 and Grant no. CityU 199113, respectively). Z.B. Liu acknowledges full financial support for this project from the Faculty Research Grant of the Hong Kong Baptist University (Grant no. FRG2/17-18/010). The usual disclaimer applies.",
year = "2018",
month = oct,
day = "1",
doi = "10.1111/jbfa.12341",
language = "English",
volume = "45",
pages = "1164--1194",
journal = "Journal of Business Finance and Accounting",
issn = "0306-686X",
publisher = "Wiley-Blackwell Publishing Ltd",
number = "9-10",
}