IDEAS home Printed from https://ideas.repec.org/a/eme/jpifpp/jpif-11-2024-0149.html
   My bibliography  Save this article

ESG investing and the performance of JSE-listed real estate firms: a system GMM approach

Author

Listed:
  • David Kitulazzi
  • Frank Kwakutse Ametefe
  • Amin Karimu
  • Omokolade Akinsomi

Abstract

Purpose - This study aims to examine environmental, social and governance (ESG) investing and its impact on the performance of Johannesburg Stock Exchange (JSE)-listed real estate firms. Design/methodology/approach - The study applies the two-step generalised method of moments framework to estimate the parameters of our regression model. Data on ESG scores and financial performance were collected from Bloomberg and Refinitiv Eikon, respectively, while data on macroeconomic factors were collected from the World Bank DataBank. The data collected were for the period of 2013–2022. Findings - The study reveals that composite ESG has a negative and significant impact on firm value as measured by Tobin’s Q. Social sustainability, on the other hand, had a significant and positive impact on both the return on equity and Tobin’s Q. Governance had a positive impact on return on assets, whereas environmental sustainability did not have a significant impact on either firm profitability or firm value. Practical implications - The results reveal that the sustainable scores of real estate firms have a positive association with the performance of listed real estate firms in South Africa and therefore, these firms should continue to pay greater attention to ESG investment during their investment decision-making. Originality/value - To the best of the authors’ knowledge, this study is the first of its kind to examine ESG investment and the performance of JSE-listed real estate firms using ESG data from Bloomberg. The study is expected to increase ESG investment understanding and interest in the property sector of South Africa.

Suggested Citation

  • David Kitulazzi & Frank Kwakutse Ametefe & Amin Karimu & Omokolade Akinsomi, 2025. "ESG investing and the performance of JSE-listed real estate firms: a system GMM approach," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 43(2), pages 222-243, February.
    • Handle: RePEc:eme:jpifpp:jpif-11-2024-0149
    DOI: 10.1108/JPIF-11-2024-0149
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JPIF-11-2024-0149/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JPIF-11-2024-0149/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JPIF-11-2024-0149?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jpifpp:jpif-11-2024-0149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.