How Foreign Institutional Shareholders' Religious Beliefs Affect Corporate Social Performance?

Which institutional investors drive corporate sustainability? A systematic literature review

“…As increased independence will be also linked with active monitoring and greater international experience, the literature assumes a positive impact of foreign institutions on corporate sustainability. In line with our remarks on independent/active, long‐term, and sustainable IO, there is empirical support for this assumption both for international samples (Bena et al, 2017; Dyck et al, 2019; Garcia‐Sanchez et al, 2020; Luong et al, 2017) and national settings such as France, Taiwan (Huang, 2010; Shu & Chiang, 2020), India (Manogna & Mishra, 2020; Panicker, 2017), and China (Li et al, 2020; Zhao et al, 2021).…”

“…Key moderator variables of these relationships are low family ownership and loss (Shu & Chiang, 2020), CSR performance by the entry of an investor, a foreign country with high regulatory quality, and a geographically remote distance (Li et al, 2020). Zhao et al (2021) stressed that foreign IO with religious beliefs increases CSR performance, positively moderated by committed investors and their ratio, and negatively moderated by long term IO.…”

“…We note that since 2020, more researchers have combined two or even three IO characteristics, with a great focus on either foreign or long-term IO. Regarding foreign institutional investors, prior studies have also included code law regimes (Yu & Zheng, 2020), long-term ownership (Chang et al, 2021), independence (Tang & Zhang, 2020), independent and long-term investors (Luong et al, 2017), home countries with social norms supportive of sustainability commitments and independence (Dyck et al, 2019), religious beliefs and long-term ownership (Zhao et al, 2021), and case law and long-term IO (Bena et al, 2017). Referring to long-term IO, few studies also combine active IO (Neubaum & Zahra, 2006), political values (Kim et al, 2020), diversity of institutions (Garcia-Sanchez et al, 2020), attention (Xiang et al, 2021), and social inclination and common ownership (Cheng et al, 2021) However, it is questionable whether institutions will accept lower financial performance during the next years due to a firm's massive sustainability investments (e.g., to reach climate neutrality production).…”

“…There are indications of a positive impact of foreign investors on CSR reporting(Garcia-Sanchez et al, 2020), CSR performance(Shu & Chiang, 2020, focused on blockholdings;Li et al, 2020), CSR spending(Manogna & Mishra, 2020;Panicker, 2017), and supplier performance(Huang, 2010). Key moderator variables of these relationships are low family ownership and loss(Shu & Chiang, 2020), CSR performance by the entry of an investor, a foreign country with high regulatory quality, and a geographically remote distance(Li et al, 2020) Zhao et al (2021). stressed that foreign IO with religious beliefs increases CSR performance, positively moderated by committed investors and their ratio, and negatively moderated by long term IO.However, we also noted a few studies with a positive impact of domestic IO on corporate sustainability.…”

Sustainable Development Goals (SDGs) as a Framework for Corporate Social Responsibility (CSR)

“…They have real effects on society [29]. What investors believe dramatically affect the CSR performance of a company [30]. For example, shareholders are more willing to consider CSR budget investments if they believe in philanthropic and ethical activities [31].…”