Multiple large shareholders and corporate environmental performance

Finance Research Letters, Volume 51, January 2023

School of Management, Guangzhou University, Guangzhou, Guangdong 510006, PR China

Received 1 August 2022, Revised 29 September 2022, Accepted 8 November 2022, Available online 11 November 2022, Version of Record 18 November 2022.


This study investigates the determinative effect of multiple large shareholders on corporate environmental performance (CEP). We take China’s A-share listed firms from 2009 to 2019 as samples and find that multiple large shareholders can improve CEP, and the conclusion is still robust after we deal with endogenous problem and conduct robustness tests. Further tests indicate that green innovation is the mechanism of action, and this effect is more significant in firms with major institutional shareholders. In addition, we also find that multiple large shareholders can enhance corporate value after improving CEP.