Building eco-friendly corporations: The role of minority shareholders

Date
2022-12-06
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Source Title
Journal of Business Ethics
Print ISSN
0167-4544
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Publisher
Springer
Volume
182
Issue
4
Pages
933 - 966
Language
English
Type
Article
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Abstract

Based on China’s mandatory requirement for listed firms to implement online voting in their annual general shareholder meetings, we investigate whether and how minority shareholders influence corporate environmental performance (CEP). We use the difference-in-difference approach and find that the implementation of online voting promotes minority shareholders’ participation in shareholder meetings, which, in turn, leads to improved CEP of listed firms. We discover that “local pollution” exposure and “the increasing awareness of listed firms’ environmental risks” are the main motives of minority shareholders concerning listed firms’ environmental performance. Furthermore, we find that the minority shareholders improve CEP of listed firms through influencing groups with greater bargaining power. © 2022, The Author(s), under exclusive licence to Springer Nature B.V.

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Keywords
Bargaining power, Corporate environmental performance, Minority shareholders’ activism, Online voting
Citation
Published Version (Please cite this version)