Do local social norms affect investors’ involvement in social activism? Revisiting the case of US institutional investors

Steven F. Cahan, Chen Chen, Li Chen

Research output: Contribution to journalArticleResearchpeer-review

4 Citations (Scopus)


Prior evidence suggests that, in contrast to European investors, local norms related to environmental and social (E&S) beliefs do not affect the willingness of US institutional investors to push for E&S improvements in US firms. We revisit this issue except, instead of measuring E&S social norms at the country level, we allow E&S social norms to vary between states. We find that the shareholdings of non-local US institutional investors from states with strong E&S social norms are positively related to E&S-related shareholder activism, indicating that local E&S social norms do matter for US institutional investors.

Original languageEnglish
Pages (from-to)1957-1992
Number of pages36
JournalAccounting & Finance
Issue numberS1
Publication statusPublished - Apr 2021


  • Corporate social responsibility
  • Institutional investors
  • Shareholder activism
  • Social norms

Cite this