Investment horizons and ESG decoupling: Distinct roles of long-term and short-term institutional investors
Document Type
Article
Source of Publication
Economics Letters
Publication Date
2-1-2025
Abstract
This paper examines how the investment horizon of institutional investors influences ESG decoupling (ESGD), using a sample of 36,055 firm-year observations from 41 countries over the period 2005 to 2023. Our findings reveal that long-term institutional investors significantly reduce ESGD, whereas short-term investors show no significant effect. This suggests that regulatory frameworks should incentivize long-term institutional ownership to enhance corporate accountability and promote more sustainable ESG practices.
DOI Link
ISSN
Publisher
Elsevier BV
Volume
247
Disciplines
Business
Keywords
ESG decoupling, Investment horizon, Long-term institutional investors, Short-term institutional investors
Scopus ID
Recommended Citation
Eliwa, Yasser and Elmaghrabi, Mohamed E., "Investment horizons and ESG decoupling: Distinct roles of long-term and short-term institutional investors" (2025). All Works. 7022.
https://zuscholars.zu.ac.ae/works/7022
Indexed in Scopus
yes
Open Access
no