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

Name: ESG investing and the financial performance: a panel data analysis of developed REIT markets
Author: Erol, Işıl, Unal, U., Coskun, Y.

İsim	ESG investing and the financial performance: a panel data analysis of developed REIT markets
Yazar	Erol, Işıl, Unal, U., Coskun, Y.
Basım Tarihi:	2023-06-28
Basım Yeri	- Springer
Konu	Corporate social performance, ESG investing, PVAR Granger causality test, REITs, Stakeholder theory of corporation, Trade-off hypothesis
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0944-1344
Kayıt Numarası	828b12f0-54f0-41c1-9ea4-20d557b4044d
Lokasyon	International Finance
Tarih	2023-06-28
Örnek Metin	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.
DOI	10.1007/s11356-023-28376-1
Cilt	30

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

Yazar Erol, Işıl, Unal, U., Coskun, Y.

Basım Tarihi 2023-06-28

Basım Yeri - Springer

Konu Corporate social performance, ESG investing, PVAR Granger causality test, REITs, Stakeholder theory of corporation, Trade-off hypothesis

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0944-1344

Kayıt Numarası 828b12f0-54f0-41c1-9ea4-20d557b4044d

Lokasyon International Finance

Tarih 2023-06-28

Örnek Metin 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.

DOI 10.1007/s11356-023-28376-1

Cilt 30