Common Institutional Ownership And Green Transition:Promote Or Inhibit

Reform and opening up for 40 years has brought China’s economic boom,but at the same time,the early extensive economic development mode has left serious resource shortage and environmental problems.To achieve sustainable economic and social development as soon as possible,the market must focus on creating a win-win situation for both economic and environmental benefits.Enterprises as core market players should first shoulder the burden of green transformation and contribute to the development of a green economy.Although Chinese government has introduced a number of bonus policies in recent years to stimulate the green transition of enterprises,enterprises still need the help and supervision of various forces in the micro market when implementing specific strategies.Therefore,this thesis selects the perspective of common institutional ownership to supplement the influence of institutional investors on corporate green transition through holding peer enterprises’ shares,and uses empirical analysis to examine the potential connection between common institutional ownership and corporate green transition.Specifically,this thesis takes the data of A-share listed companies from 2007 to 2020 in China as research samples to establish a multiple regression model for empirical test.The research shows that the existence of common institutional ownership can promote the green transition of enterprises,and the more the number of joint institutional investors and the larger the proportion of shares,the more positive help to the green transition of enterprises.The above conclusions were further verified by instrumental variable method,propensity score matching method,differences-in-differences method and alternative variable method.Moreover,this thesis finds that market competition and knowledge foundation can explain the influence path of common institutional ownership on enterprises’ green transition.Common institutional ownership can make use of social network connection to generate knowledge spillover effect of peer enterprises,so as to concentrate the knowledge foundation of enterprises to improve the efficiency of green transition.Companies with common institutional ownership will apply the experience related to transition into familiar technical domains through their network of connections in case of the waste of resources from blind exploration.In addition,considering that the realization of green transition can bring long-term profits to the operation and development of enterprises,and the information advantage and governance experience of common institutional owners can help enterprises greatly improve the efficiency of transition,the competition among peer enterprises tends to be fierce in order to obtain more resources allocation from common institutional investors.This kind of market competition pattern will make the green transition trend of the industry develop towards a positive direction and the transition motivation of enterprises will be enhanced.Finally,the grouping regression method is used to study whether the ownership of common institutions will have different effects on the green transition of enterprises under different background from three aspects: regional environmental regulation intensity,industrial pollution degree and corporate financing constraints.The results show that the ownership of common institutions shows stronger influence effect under regional policy instruments with strong environmental regulation intensity.And the green transformation ability of enterprises in heavily polluting industries will be greatly improved after they are jointly held by institutional investors.However,when enterprises are faced with strong financing constraints,although common institutional ownership can bring information advantages and industry experience,it is not enough to make up for the lack of funds for green transition,so the effectiveness is relatively limited.Based on the above conclusions,this thesis proposes the following policy recommendations: In the process of promoting the comprehensive green transition of economic and social development,the government should attach importance to the important role played by joint institutional investors in the market,expand their influence scope and effectiveness in the capital market through correct guidance,and at the same time,be alert to the emergence of opportunistic behaviors under the joint shareholding of institutional investors;Small and medium-sized investors can also rely on the common institutional ownership of listed companies to identify enterprises with strong green transition ability to reduce investment risks,and the inflow of such capital can finally ease the financing pressure in the process of green transition of enterprises,and further accelerate the process of green transition of enterprises.From the enterprise level,the management should actively cooperate with the supervision and governance of common institutional investors.When common institutional ownership occurs,it is necessary to make full use of investors’ information advantages and communication channels,strengthen the connection with peer enterprises,and promote green transition to accelerate the realization of sustainable management goals.