IDEAS home Printed from https://ideas.repec.org/a/taf/repmxx/v19y2013i2p169-177.html
   My bibliography  Save this article

Are Green REITs Valued More?

Author

Listed:
  • Vivek Sah
  • Norman Miller
  • Biplab Ghosh

Abstract

Executive Summary. The growing popularity of corporate social responsibility amongst firms has led to an increase in sustainable initiatives across all sectors. While there has been evidence of benefits to owners of green buildings, the impact at the firm level for such investments is not commonly known. The objective of this study is to provide evidence on the question of financial benefits from strategic initiatives aimed at increasing ownership of greener buildings. We use real estate investment trusts (REITs) as investors/owners of properties to test if management initiatives result in higher firm value. Using a proxy for green initiatives by REITs, we find evidence of positive impact on firm value as measured by Tobin's q. Further, our results show that green REITs have a higher return on assets than their less-green peers. As an additional analysis, we find evidence of superior stock performance by green REITs over their non-green peers using Jensen's alpha as a measure.

Suggested Citation

  • Vivek Sah & Norman Miller & Biplab Ghosh, 2013. "Are Green REITs Valued More?," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 19(2), pages 169-177, January.
    • Handle: RePEc:taf:repmxx:v:19:y:2013:i:2:p:169-177
    DOI: 10.1080/10835547.2013.12089948
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2013.12089948
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2013.12089948?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.

    More about this item

    Statistics

    Access and download statistics

    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:taf:repmxx:v:19:y:2013:i:2:p:169-177. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/repm20 .

    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.