A1 Refereed original research article in a scientific journal
Blockholding, ownership horizon, and firms' ESG performance
Authors: Chowdhury, Abu; Vaihekoski, Mika; Yahya, Habeeb
Publisher: Taylor & Francis
Publication year: 2026
Journal: European Journal of Finance
ISSN: 1351-847X
eISSN: 1466-4364
DOI: https://doi.org/10.1080/1351847X.2026.2614421
Publication's open availability at the time of reporting: Open Access
Publication channel's open availability : Partially Open Access publication channel
Web address : https://doi.org/10.1080/1351847x.2026.2614421
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/508316613
Self-archived copy's licence: CC BY
Self-archived copy's version: Publisher`s PDF
This paper examines whether blockholders and their investment horizon influence firms' ESG performance in the Nordic countries. We use ownership data for the three largest owners of the publicly listed firms, and we find a positive, statistically significant association between the ownership of the top two blockholders and a firm's ESG scores. Closer analysis reveals that the impact is driven by long-term blockholders. The effect concentrates on the environmental and social pillars, rather than governance. Our study contributes to the literature by showing that long-term horizons of the largest blockholders, identified through observed holding periods, play a key role in shaping firms' ESG performance in the Nordic context. The results imply that boards, policymakers, and stewardship teams can leverage stable, long-horizon blockholders to advance environmental and social efforts, even when governance scores do not move in tandem.
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Funding information in the publication:
Habeeb Yahya appreciates financial support from the Foundation for Economic Education and Alfred Kordelin Foundation.