Do responsible real estate companies outperform their peers?

Marcelo Cajias, Franz Fuerst, Patrick McAllister, Anupam Nanda

Research output: Working paper


This paper investigates the relationship between corporate social and environmental performance and financial performance for a sample of publicly traded US real estate companies. Using the MSCI ESG (formerly KLD) database on seven Environmental, Social Governance dimensions in the 2003-2010 period, and weighting the dimensions according to prominence in the real estate sector, we model Tobin's Q and annual total return in a panel data framework. The results indicate a positive relationship between ESG rating and Tobin's Q but this effect is driven by ESG concerns rather than strengths. Consistently across all model specifications, overall ESG ratings are associated with lower returns. Negative scores appear to result in higher returns in the short run but positive scores have no significant impact on returns.
Original languageUndefined
Place of PublicationReading
PublisherUniversity of Reading
Publication statusPublished - 2011

Publication series

NameWorking Papers in Real Estate Planning
PublisherUniversity of Reading


  • Environmental Social Governance
  • Corporate Social Responsibility
  • Corporate Financial Performance
  • Real Estate
  • Panel Data

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