The effect of institutional dual holdings on CSR performance

Kerstin Lopatta, Alexander Bassen, Thomas Kaspereit, Sebastian A. Tideman, Daniel Buchholz

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


This study sheds light on agency conflicts between creditors and shareholders and their effect on a firm's corporate social responsibility (CSR) performance. We find that the presence of institutional investors which simultaneously hold debt and equity claims in the same firm, so-called dual holders, leads to an increase in CSR performance by the firm that is dual-held (the dual holding firm). Using institutional mergers between separate lenders and equity holders as a natural experiment involving the shareholder-creditor conflict, we find that firms which exhibit dual ownership for the first time increase their CSR activities to a greater extent than a matched control group. In line with the previous literature, we interpret our findings as evidence that dual holders internalise agency conflicts. Thus, we find that a reduction in agency conflicts between creditors and shareholders, partly achieved by dual holders, positively affects the CSR activities of dual holdings.

Original languageEnglish (US)
Pages (from-to)431-450
Number of pages20
JournalJournal of Sustainable Finance and Investment
Issue number2
StatePublished - 2022
Externally publishedYes


  • CSR
  • Dual holdings
  • agency conflicts
  • corporate social responsibility
  • debt
  • equity
  • institutional investors

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)


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