A Study on the Impact of Institutional Investors’ Socially Responsible Investment on Firm Value for Sustainability

Q: What does this research mean for the field?

A firm's sustainable growth rate (SGR) positively impacts its market value both directly and indirectly through increased institutional investment stakes, a mediating effect that is further strengthened by higher ESG ratings. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

Minho Lee; Yujin Chang; Jaewook Yoo

doi:10.17287/kbr.2026.30.3.119

August 31, 2026Korea Business Review

A Study on the Impact of Institutional Investors’ Socially Responsible Investment on Firm Value for Sustainability

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Key Points

To investigate the direct impact of the sustainable growth rate on firm value and evaluate how institutional ownership and ESG ratings mediate and moderate this relationship.
Analyzed balanced panel data from publicly listed companies in South Korea.
Tested direct, mediating, and moderated mediation effects connecting sustainable growth rate, National Pension Service equity ownership, ESG ratings, and firm value.
Sustainable growth rate exerted a significant positive direct effect on firm valuation, reflecting the market value of financial growth capacity and financial autonomy.
National Pension Service investment share significantly increased with sustainable growth rate and exerted a positive effect on firm value, confirming a partial mediation effect.
ESG ratings significantly moderated the mediation pathway, with higher ESG ratings amplifying the indirect positive effect of sustainable growth on firm value through pension fund ownership.

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Implication

Panel study reveals institutional investment mediates sustainable growth effects on firm value in Korean listed firms, indicating ESG ratings strengthen this impact.

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Cite This Study

Lee et al. (2026) studied this question.

synapsesocial.com/papers/6a993626636c6408cfa7f087 https://doi.org/10.17287/kbr.2026.30.3.119

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A Study on the Impact of Institutional Investors’ Socially Responsible Investment on Firm Value for Sustainability

Key Points

Ask about this paper

Implication

Abstract

Discussion

Cite This Study

A Study on the Impact of Institutional Investors’ Socially Responsible Investment on Firm Value for Sustainability

Key Points

Ask about this paper

Implication

Abstract

Discussion

Cite This Study

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