Investment horizons and ESG decoupling: Distinct roles of long-term and short-term institutional investors

Author First name, Last name, Institution

Yasser Eliwa, Zayed University
Mohamed E. Elmaghrabi, Al Ain University

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

10.1016/j.econlet.2025.112207

ISSN

0165-1765

Publisher

Elsevier BV

Volume

247

Disciplines

Business

Keywords

ESG decoupling, Investment horizon, Long-term institutional investors, Short-term institutional investors

Scopus ID

85215794065

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