Corporate Social Responsibility Risk And Institutional Investors’ Shareholding Behavior

In this study,we examined the relationship between corporate social responsibility risk and institutional shareholding through the corporate social responsibility risk indicators from the Rep Risk database.We first examine the impact of corporate social responsibility risk on institutional investors’ shareholding behavior.On this basis,according to the degree of regional marketization,differences in property rights,and corporate performance,we analyze the difference in the impact of social responsibility risk on institutional investors’ shareholding behavior in different situations.Secondly,according to the "whether there is a commercial connection with a listed company",the types of institutional investors are further distinguished,and the impact of corporate social responsibility risks on different types of institutional investors is analyzed.Finally,we further analyze the reasons why social responsibility risk affects institutional investors’ shareholding behavior,and explore the impact of screening strategies on institutional investors.The study found that the institutional investor’s shareholding ratio was significantly negatively correlated with corporate social responsibility risk,and the above relationship was more significant in regions with higher levels of marketization,state-owned companies,and companies with better operating performance.When considering the heterogeneity of institutional investors,it is only found that the shareholding ratio of independent institutional investors is negatively related to the corporate social responsibility risk,while the shareholding ratio of non-independent institutional investors is not affected by social responsibility risk.In further analysis,we also found that corporate social responsibility risk will negatively affect earnings sustainability,which means that investors investing in companies with higher social responsibility risk will reduce the investment value.At the same time,China’s institutional investors adopt a passive screening method for social responsibility risks,indicating that social responsibility risks are not the primary consideration for institutional investors in formulating investment strategies.