INSTITUTIONAL OWNERS AND CORPORATE SOCIAL PERFORMANCE

In this study, we hypothesize that institutions invest more heavily in companies with strong corporate social performance. Analysis indicate d a significant, positive relationship between social performance and the number of institutions holding the shares of a company and a posit ive but insignificant relationship between social performance and the percentage of shares held by institutions. We conclude that improving a company's corporate social performance invokes no penalty in institu tional ownership.