ESG investing and the financial performance: a panel data analysis of developed REIT markets
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F45773009%3A_____%2F23%3AN0000010" target="_blank" >RIV/45773009:_____/23:N0000010 - isvavai.cz</a>
Result on the web
<a href="https://link.springer.com/article/10.1007/s11356-023-28376-1" target="_blank" >https://link.springer.com/article/10.1007/s11356-023-28376-1</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/s11356-023-28376-1" target="_blank" >10.1007/s11356-023-28376-1</a>
Alternative languages
Result language
angličtina
Original language name
ESG investing and the financial performance: a panel data analysis of developed REIT markets
Original language description
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.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Environmental Science and Pollution Research
ISSN
0944-1344
e-ISSN
1614-7499
Volume of the periodical
30
Issue of the periodical within the volume
36
Country of publishing house
DE - GERMANY
Number of pages
15
Pages from-to
85154–85169
UT code for WoS article
001021311100009
EID of the result in the Scopus database
2-s2.0-85163599120