Institutional ownership and social and sustainability reporting in green companies

Abstract

This research study explores the social and financial performance and sustainability costs on institutional ownership companies. The quantitative research method is used for this research study. The sample comprised of top forty US environmental companies from 2012 to 2014. The research question for this study is, what relationship is there between the corporate governance, corporate social and environmental performance, employee participation, and market and financial performance? This research finds that there is a positive correlation among all the variables except for the sustainability costs. The social performance has a significant correlation with the institutional ownership than sustainability costs. The social performance had a positive impact on stock price than sustainability costs. The increased strategy of the CSR practices didn’t motivate employee participation in the company’s ownership structure, a negative correlation. Institutional ownership had a very weak positive effect on the employee stock ownership. Employee stock ownership had a strong correlation with the stock price. The quality and frequency of the CSR reporting varies from company to company; hence, the investors, stakeholders, and shareholders had to depend on the management goodwill.