Khalifa, Mohamed ORCID: https://orcid.org/0009-0003-2589-9921, Ullah, Subhan and Abdelfattah, Tarek (2026) Institutional cross-ownership and ESG decoupling. Review of Quantitative Finance and Accounting. ISSN 0924-865X (Print), 1573-7179 (Online) (doi:10.1007/s11156-026-01531-8)

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Abstract

This study examines the relationship between institutional cross-ownership and ESG decoupling. Based on a dataset of 3,955 firm-year observations for S&P 500 firms for the period 2010–2022, we find a negatively significant association between institutional cross-ownership and ESG decoupling. Additional analyses on institutional cross-owner characteristics reveal that our findings are driven mainly by institutional cross-owners with long-term investment horizons. Besides, subsample analyses reveal that the negative impact manifests more in companies with lower board co-option, shorter CEO career horizon, and those that are non-controversial. Furthermore, we document that both the monitoring and financing advantages channels explain institutional cross-ownership’s negative influence on ESG decoupling. The baseline results are robust to a battery of robustness checks and endogeneity tests. Collectively, this study provides insightful theoretical and policy implications for the field of institutional ownership and ESG.

Item Type:	Article
Uncontrolled Keywords:	institutional cross-ownership, ESG decoupling, ESG disclosure, ESG performance
Subjects:	H Social Sciences > H Social Sciences (General)
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > School of Accounting, Finance and Economics
Last Modified:	04 Jun 2026 15:45
URI:	https://gala.gre.ac.uk/id/eprint/53663

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