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Beyond returns: How talking to institutional investors fuels corporate sustainability?

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  • Zhang, Wei
  • Wang, Yanping
  • Yang, Min

Abstract

This research examines the impact of interacting with senior executives from companies on the longevity of businesses. Data from 2015 to 2024 is analyzed, and it shows that engaging with meaningful investors can strengthen corporate sustainability by providing transparency for managers and reducing their short-term focus. Moreover, we can see this positive impact in low-pollution businesses. It shows institutional investors are active governance partners, promoting good corporate practice. The findings highlight the potential strategic value of shaping investor dialogue channels to transform external inputs into tangible ecological improvements. This could serve as a helpful guide for policymakers and firms seeking faster paths to sustainability.

Suggested Citation

  • Zhang, Wei & Wang, Yanping & Yang, Min, 2025. "Beyond returns: How talking to institutional investors fuels corporate sustainability?," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020604
    DOI: 10.1016/j.frl.2025.108806
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    References listed on IDEAS

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