Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/222048
Title: JOINING ESG FRATERNITY: HOW SUSTAINABILITY RATING AND INDEX IMPACT THE FINANCIAL PERFORMANCE OF SREITS.
Authors: ZHANG YIKAI
Keywords: 2020-2021
Real Estate
Bachelor's
BACHELOR OF SCIENCE (REAL ESTATE)
Ong Seow Eng
Issue Date: 14-Apr-2021
Citation: ZHANG YIKAI (2021-04-14). JOINING ESG FRATERNITY: HOW SUSTAINABILITY RATING AND INDEX IMPACT THE FINANCIAL PERFORMANCE OF SREITS.. ScholarBank@NUS Repository.
Abstract: This paper examines the interaction between the sustainability efforts and achievements of REITs in Singapore market (S-REIT) and their financial performance which consists of stock and operating components. Two sustainability measuring metrics were employed, namely Singapore Exchange (SGX) ESG Indices and Bloomberg ESG Disclosure Score. For the stock performance, S-REITs that were announced to be included into ESG indices suffered a negative statistically significant cumulative average abnormal return during the event window period after the announcement date. REIT constituents in the SGX ESG Indices were found to have lower exposure to market risk and generate higher alpha than their peers who were not qualified for these indices. However, this outperformance is unclear when taking into account Covid-19 measures in Singapore. In terms of operating performance which are represented by return on assets and return on equity, S-REITs with higher ESG ratings were found to have negative returns. The findings of this study should provide meaningful insight to the future investment strategies involving sustainability considerations.
URI: https://scholarbank.nus.edu.sg/handle/10635/222048
Appears in Collections:Bachelor's Theses

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