Company Characteristics and Investments Related to ESG Ratings - Does Ownership Have an Impact?

Abstract: This paper examines the relationship between ownership structure and ESG ranking. Data from companies is used to analyze which types of investors invest in companies with high ESG rankings. The result of the study shows that investment advisors combined with hedge funds invested in companies with high ESG ranking, meanwhile individual investors, separate hedge funds, and separate investment advisors did not invest as much in companies with high ESG ranking. Some strength to ownership as a predictor of increases in ESG rating was present but not conclusive.