Does it pay to be responsible? Evidence on corporate social responsibility and the investment performance of Australian REITs. Issue 4 (4th July 2022)

• Record Type: Journal Article
• Authors: Westermann, Steffen; Niblock, Scott J.; Kortt, Michael A.
• Is Part Of: Asia-Pacific journal of accounting & economics. Volume 29:Issue 4(2022)
• Page Start: 1102
• Page End: 1119
• Publication Date: 2022-07-04
• Subjects: CSR -- investment -- performance -- real estate -- risk; Accounting -- Periodicals; Accounting -- Pacific Area -- Periodicals; Economics -- Periodicals; Pacific Area -- Economic conditions -- Periodicals; 657
• DOI: 10.1080/16081625.2019.1673188
• Languages: English
• ISSNs: 1608-1625

Abstract

ABSTRACT: This paper creates portfolios to better understand the influence of corporate social responsibility (CSR) practices on the risk-adjusted returns of Australian Real Estate Investment Trusts (A-REITs) from 2007 to 2016. We find that A-REIT portfolios (except for the high CSR-rated portfolio) outperform the broader Asia-Pacific market. We also show that the low CSR-rated A-REIT portfolio delivers the best risk-adjusted return performance. Our findings indicate that while CSR practices might mitigate risk in A-REITs, they do not appear to improve risk-adjusted return performance. However, CSR practices may be effective in producing greater risk-adjusted returns for A-REITs during market downturns or economic crises.