A1 Refereed original research article in a scientific journal

Blockholding, ownership horizon, and firms' ESG performance




AuthorsChowdhury, Abu; Vaihekoski, Mika; Yahya, Habeeb

PublisherTaylor & Francis

Publication year2026

Journal: European Journal of Finance

ISSN1351-847X

eISSN1466-4364

DOIhttps://doi.org/10.1080/1351847X.2026.2614421

Publication's open availability at the time of reportingOpen 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 addresshttps://research.utu.fi/converis/portal/detail/Publication/508316613

Self-archived copy's licenceCC BY

Self-archived copy's versionPublisher`s PDF


Abstract

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.


Downloadable publication

This is an electronic reprint of the original article.
This reprint may differ from the original in pagination and typographic detail. Please cite the original version.




Funding information in the publication
Habeeb Yahya appreciates financial support from the Foundation for Economic Education and Alfred Kordelin Foundation.


Last updated on 10/02/2026 09:40:59 AM