Dr Duo (Selina) Pei, University of Warwick,  UK

"Institutional Investors and Environmental Expertise on Corporate Boards" 
Wednesday, 1 October 2025. 12:00-13:30 

Room 282, The Hothouse Adam Smith Business School Building

Abstract

This paper investigates how institutional ownership influences the presence of directors with environmental expertise on corporate boards, and the subsequent impact on environmental risk and performance. Using a sample of S&P 1500 firms from 2010 to 2023, we find that ownership by passive investors with diversified holdings and blockholders is positively associated with the presence of environmental directors, while ownership by short-term investors shows a negative association. We also analyze how firms benefit from appointing environmental directors. Specifically, we document that such firms manage environmental risks more effectively, as evidenced by fewer environmental shareholder proposals and increased discussion of environmental risks during conference calls. In addition, we find that environmental directors have an immediate impact on reducing carbon emissions. Our findings suggest that environmental directors function as an effective governance mechanism through which passive investors with diversified portfolios and blockholders can delegate the oversight of environmental risk management. 

Bio

Selina joined Warwick Business School in Autumn 2021 after completing her PhD in Accounting at Rutgers University. Prior to that, she received her BCom from the University of Toronto. Selina's research interests are in institutional investors, social media, sustainability, and their effects on information in the capital markets.

 

 

For further information, please contact business-school-research@glasgow.ac.uk

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First published: 16 September 2025

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