How Do the CEO Political Leanings Affect REIT Business Decisions?

Deng, Xiaoying; Anglin, Paul M.; Gao, Yanmin; Sun, Hua

doi:10.1080/08965803.2021.2003507

Cited by 5 publications

(1 citation statement)

References 69 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Gupta et al ( 2021 ) find that the political leaning of CEOs impacts the adoption of CSR executives. Focusing on REITs, (Deng et al, 2021 ) show that the political leaning of CEOs of REITs affects business decisions. In particular, Democratic-leaning CEOs are willing to take on more risks, e.g., in terms of financing decisions, and adopt more (environmental) ESG strategies than Republican-leaning CEOs.…”

Section: Introductionmentioning

confidence: 99%

Governmental Restrictions and Real Estate Investor Risk Perception

Kaiser

Freybote

Schäfers

2023

J Real Estate Finan Econ

View full text Add to dashboard Cite

We investigate the impact of governmental restrictions on the short-term risk perception, as proxied by the going-in cap rate, of investors in regional and neighborhood shopping centers. We use the COVID-19 pandemic as a natural experiment and proxy for the length and severity of COVID-19 restrictions with the political affiliation of state governors. Using a sample of 40 metropolitan statistical areas (MSAs) across 27 states over the period of 2018 to 2021, we find that for states with Republican governors, which proxy for shorter and fewer COVID-19 restrictions, investors in regional malls required a lower going-in cap rate in the pandemic period than for states with Democratic governors. This effect does not exist for neighborhood shopping centers, whose tenants were not as affected by COVID-19 restrictions. Robustness checks suggest that our findings can be explained with mask mandates as one type of governmental restrictions, and that COVID-19 related restrictions do not impact the long-term risk perception of retail real estate investors. We furthermore find that the political attitudes of an MSA have an impact on investor risk perception.

show abstract

Section: Introductionmentioning

confidence: 99%