Do local social norms affect investors’ involvement in social activism? Revisiting the case of US institutional investors | Zendy

Cahan Steven F. | Zendy; Chen Chen | Zendy; Chen Li | Zendy

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Do local social norms affect investors’ involvement in social activism? Revisiting the case of US institutional investors

Author(s) -

Cahan Steven F.,

Chen Chen,

Chen Li

Publication year - 2021

Publication title -

accounting and finance

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.645

H-Index - 49

eISSN - 1467-629X

pISSN - 0810-5391

DOI - 10.1111/acfi.12649

Subject(s) - institutional investor , affect (linguistics) , shareholder , contrast (vision) , social trust , business , political science , social capital , corporate governance , sociology , finance , law , communication , artificial intelligence , computer science

Prior evidence suggests that, in contrast to European investors, local norms related to environmental and social (E&S) beliefs do not affect the willingness of US institutional investors to push for E&S improvements in US firms. We revisit this issue except, instead of measuring E&S social norms at the country level, we allow E&S social norms to vary between states. We find that the shareholdings of non‐local US institutional investors from states with strong E&S social norms are positively related to E&S‐related shareholder activism, indicating that local E&S social norms do matter for US institutional investors.

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