Institutional blockholders and corporate social responsibility

  • Chune Young Chung
  • Sang Jun Cho
  • Doojin RyuEmail author
  • Doowon Ryu
Original Article


By analyzing the Korean market characterized by chaebol firms, we provide evidence for the effectiveness of institutional blockholders’ monitoring of firms’ engagement in corporate social responsibility (CSR) activities. Lagged institutional blockholder ownership has a significantly positive effect on an investee firm’s current CSR index, suggesting that institutional blockholders actively engage with firms’ CSR activities to improve these firms’ long-term prosperity and performance, primarily because these blockholders cannot sell their large holdings without eroding the values of their investments. Domestic institutional blockholders have a greater effect on CSR than foreign institutional blockholders have, although the latter blockholders are becoming increasingly influential.


Asian market Corporate governance Corporate social responsibility Institutional blockholder Institutional monitoring 

JEL Classification

G32 G34 



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Authors and Affiliations

  1. 1.School of Business AdministrationChung-Ang UniversitySeoulRepublic of Korea
  2. 2.Department of EconomicsSungkyunkwan UniversitySeoulRepublic of Korea
  3. 3.Business SchoolKorea UniversitySeoulRepublic of Korea

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