The Financial Performance of Green Reits Revisited

Coën, Alain; Lecomte, Patrick; Abdelmoula, Dorra

doi:10.1080/10835547.2018.12090009

Cited by 20 publications

(5 citation statements)

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“…[9] The model variables are listed in Table 2. We retrieved all nancial data from the Thomson Reuters Worldscope and DataStream databases and utilized two risk-free rate proxies obtained from Bloomberg, namely the 3-month LIBOR and Overnight Indexed Swap rate [10]. ESG scores are obtained from the Thomson Reuters Asset4 database that evaluates CSP based on three pillars of environmental, social, and corporate governance performance.…”

Section: Model and Empirical Speci Cationmentioning

confidence: 99%

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ESG investing and the financial performance: a panel data analysis of developed REIT markets

Erol

Unal

Coşkun

2023

Environ Sci Pollut Res

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This study investigates the empirical link between the social and nancial performance of the Real Estate Investment Trusts (REITs) by utilizing the PVAR-Granger causality model and a xed-effects panel data model with a rich dataset comprising 234 ESG-rated REITs across ve developed economies from 2003 to 2019. The results suggest that investors pay attention to individual E/S/G metrics and price each component of ESG investing differently, with Einvesting and S-investing practices being the signi cant nancial performance factors of REITs. This study is the rst attempt to test the social impact and risk mitigation hypotheses of the stakeholder theory of the corporation and the neoclassic trade-off argument to explore the association between corporate social responsibility and the market valuation of REITs. The full sample results strongly support the trade-off hypothesis, indicating that REITs' environmental policies involve high nancial costs that may drain off capital and lead to decreasing market returns. On the contrary, investors have attached a higher value to S-investing performance, especially in the post-GFC period from 2011 to 2019. A positive premium for S-investing supports the stakeholder theory as the social impact could be monetarized into a higher return and a lower systematic risk and give rise to a competitive advantage.

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Section: Model and Empirical Speci Cationmentioning

confidence: 99%

“…[9] Sassen et al, (2016) also used the historical beta index obtained from DataStream database. [10] We use Overnight Indexed Swap rate data to re ect the impact of counterparty credit risk into risk-free rate variable.…”

Section: Sub-period Regression Analysismentioning

confidence: 99%

ESG investing and the financial performance: a panel data analysis of developed REIT markets

Erol

Unal

Coşkun

2023

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…[9] The model variables are listed in Table 2. We retrieved all data from the Thomson Reuters Worldscope DataStream databases and utilized two risk-free rate proxies obtained from Bloomberg, namely the 3-month LIBOR and Overnight Indexed Swap rate [10]. ESG scores are obtained from the Thomson Reuters Asset4 database that evaluates CSP based on three pillars of environmental, social, and corporate governance performance.…”

Section: And Empirical Speci Cationmentioning

confidence: 99%

ESG Investing and the Financial Performance: A Panel Data Analysis of Developed REIT Markets

Erol

Unal

Coşkun

2023

Preprint

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This study investigates the empirical link between the social and financial performance of the Real Estate Investment Trusts (REITs) by utilizing the PVAR-Granger causality model and a fixed-effects panel data model with a rich dataset comprising 234 ESG-rated REITs across five developed economies from 2003 to 2019. The results suggest that investors pay attention to individual E/S/G metrics and price each component of ESG investing differently, with E-investing and S-investing practices being the significant financial performance factors of REITs. This study is the first attempt to test the social impact and risk mitigation hypotheses of the stakeholder theory of the corporation and the neoclassic trade-off argument to explore the association between corporate social responsibility and the market valuation of REITs. The full sample results strongly support the trade-off hypothesis, indicating that REITs’ environmental policies involve high financial costs that may drain off capital and lead to decreasing market returns. On the contrary, investors have attached a higher value to S-investing performance, especially in the post-GFC period from 2011 to 2019. A positive premium for S-investing supports the stakeholder theory as the social impact could be monetarized into a higher return and a lower systematic risk and give rise to a competitive advantage. JEL Codes: G11; G15; G32; M14

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“…Energy star or LEED) and evaluaJng the role of green label building among the asset under management (Eichholtz, Kok, and Yonder, 2012). Empirical evidence show that REITs with be?er green reputaJon are also those that are more requested in the market and may be offer abnormal returns with respect to tradiJonal pricing models (like CAPM and Fama and French) (Coën, Lecomte, and Abdelmoula, 2018). The effect of the cerJficaJon status is decreasing over Jme because for some markets the building cerJficaJon is nowadays a standard that cannot be missed if the REIT is targeJng mulJnaJonal corporaJons as tenants (Devine, Sanderford, and Wang, forthcoming).…”

Section: Literature Reviewmentioning

confidence: 99%

REITs performance and building energy efficiency

Lucia,

Mattarocci

2023

29th Annual European Real Estate Society Conference

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Energy efficiency is nowadays one of the main targets for reaching sustainable economic growth in the medium long term. Real Estate is one of the main drivers of polluJon, and more responsible investments may represent a reasonable strategy for reducing the negaJve impact on environment. Empirical analysis on the characterisJcs of real estate assets by REITs may allow idenJfying if market recognizes a premium or a penalizaJon due to more responsible investment in the real estate industry. Results on a worldwide diversified sample show that currently there is no premium for invesJng in green oriented REITs and there is not a financial incenJve related to REITs' porPolios characterized by lower energy consumpJon and more usage of renewable energy.

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The Financial Performance of Green Reits Revisited

Cited by 20 publications

References 0 publications

ESG investing and the financial performance: a panel data analysis of developed REIT markets

ESG investing and the financial performance: a panel data analysis of developed REIT markets

ESG Investing and the Financial Performance: A Panel Data Analysis of Developed REIT Markets

REITs performance and building energy efficiency

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