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The Impact Of Active And Passive Ownership On Total Shareholder Return And Environmental, Social, And Governance Performance Of Companies, Abigail J. Bennett
The Impact Of Active And Passive Ownership On Total Shareholder Return And Environmental, Social, And Governance Performance Of Companies, Abigail J. Bennett
Honors College
The purpose of this study was to test the impact of passive and active ownership on total shareholder return (TSR) and environmental, social, and governance (ESG) score of firms. The motivation behind the study is the rise in passive investing over the last few decades and the concern that passive owners are not able to engage sufficiently with management of the companies they are invested in.
This study hypothesized that firms that are actively controlled have high TSR and higher ESG scores than firms that are passively controlled. The hypothesis was supported by the reasoning that passive owners lack the …