An empirical study of investment and effectiveness of monitoring activities of institutional investors

2023 Fiscal Year Final Research Report

• Project/Area Number: 21K01556
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07060:Money and finance-related
• Research Institution: Tokyo Institute of Technology
• Principal Investigator: Inoue Kotaro 東京工業大学, 工学院, 教授 (90381904)
• Project Period (FY): 2021-04-01 – 2024-03-31
• Keywords: 機関投資家 / モニタリング / ESG投資 / フリーライダー問題 / サステナビリティ

Outline of Final Research Achievements

The objectives of this study are, first, to determine the effect of monitoring by institutional investors through their equity holdings on the innovation of their portfolio companies, and second, to clarify the factors that influence the selection of engagement targets and topics by institutional investors and their effect on the portfolio companies. The results of this study indicate that institutional investors have different effects on each of the ESG (environmental, social, and governance) aspects of portfolio companies depending on their institutional backgrounds and contexts, that governance engagement activities improve the governance and profitability of portfolio companies, that environmental and social engagement activities improve the environmental and social performance of portfolio companies.

Free Research Field

ファイナンス、企業統治

Academic Significance and Societal Importance of the Research Achievements

本研究の学術的成意義は、分散投資を行いフリーライダー問題を抱える機関投資家が、制度的な適切なインセンティブ付与により、そのモニタリング活動を通し、投資先企業のイノベーションを促進し、ESG（環境、社会、ガバナンス）の各側面を改善する効果を有することを実証的に明らかにしたことである。この成果は、今後の日本における最適なコーポレートガバナンス制度の検討に資する証拠を提示するという社会的意義を持つ。