Finance and Accounting Seminar Series

【Topic】

Environmental Cost of Importing Activists

【Host】

Prof. Yu Luping, assistant professor of Financial Department, School of Management, Xiamen University

【Abstract】

Using the introduction of shareholder-empowering governance regulation in 28 countries from 2009 to 2018, we document a reduction in corporate environmental sustainability in a sample of 6,210 firms in 45 countries. The reduction can be explained by the increase in stock liquidity, the increased proportion of foreign, minority, and short-term shareholders, decreased environmental-related proposals, and the higher rejection rate of environmental proposals. The effect is more pronounced for firms with higher financial constraints and higher agency conflicts, and firms in countries with worse institutions. Overall, our findings cast caution on the unintended consequences of shareholder activism.

【Speaker】

Peng Qilin

Assistant professor of College of Business, University College Dublin