Preference or Improvement:Institutional Investors and Corporate Social Performance in China

The paper studies the relationship between institutional investors’ ownership and Corporate Social Performance (CSP) in China based on the panel data of 918 listed companies in Shanghai and Shenzhen Stock Exchange from 2006 to 2010. It finds that:(1) institutional investors’ ownership are positively related to CSP, namely institutional investors have strong morals preference capabilities; (2) institutional investors’ ownership have weak influence on future CSP, namely institutional investors have limited morals improvement capabilities; (3) different institutional investors have different relationship with CSP, only funds have morals preference and improvement capabilities.