{"title":"Investment horizons and ESG decoupling: Distinct roles of long-term and short-term institutional investors","authors":"Yasser Eliwa , Mohamed E. Elmaghrabi","doi":"10.1016/j.econlet.2025.112207","DOIUrl":null,"url":null,"abstract":"<div><div>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.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"247 ","pages":"Article 112207"},"PeriodicalIF":2.1000,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economics Letters","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0165176525000448","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
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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.
期刊介绍：
Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Economics Letters has been conceived and designed outside the realm of the traditional economics journal. As a Letters Journal, it consists of concise communications (letters) that provide a means of rapid and efficient dissemination of new results, models and methods in all fields of economic research.
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