The Impact of Investor Types on Corporate Social Responsibility - Evidence from Europe

Abstract: In this research, we analyse the complex relationship between various investor types and Corporate Social Responsibility (CSR) performance, measured via Environmental, Social, and Governance (ESG) scores. The study leverages a comprehensive dataset of European companies spanning two decades, employing fixed-effect regression models to discern patterns. Our research enriches existing literature by dissecting investor heterogeneity in relation to CSR engagement. Our findings reveal nuanced dynamics: active investment advisors demonstrate a negative correlation with ESG scores, passive investment advisors show a positive relationship, while long-term institutional and government investors exhibit no significant correlation. Individual investors present a negative correlation. This study provides a robust foundation for understanding the interplay between investor types and CSR performance, paving the way for further in-depth analyses.