Green Building, Cost of Equity Capital and Corporate Governance: Evidence from US Real Estate Investment Trusts

Hsieh, Hui Ching; Claresta, Viona; Bui, Tat-Dat

doi:10.3390/su12093680

Cited by 16 publications

(9 citation statements)

References 58 publications

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“…According to theoretical analysis, the resource allocation efficiency under multitier capital market system belongs to the field of social capital utilization [16,17]. Because of the irreplaceability of social capital application, the multitier capital market offers a greater and more diverse space than a single main board market, making it possible to expand the application scope of social capital [18]. Suppose that all investors are rational, and the security market meets the principles of effectiveness.…”

Section: Transmission Effectiveness Of Resource Allocation Efficiencymentioning

confidence: 99%

Transmission Effectiveness of Resource Allocation Efficiency in Multitier Capital Market System

Xiaoyuan

2021

Discrete Dynamics in Nature and Society

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With the continuous development of the capital market, in order to study the effectiveness of the multilevel capital market, the operation status of the multilevel capital market is used as the research object, and the Pareto analysis paradigm is used to study the effectiveness of the transmission mechanism of the resources allocation efficiency of the multilevel capital market. Research has shown that Pareto analysis model can be used to analyze the multilevel capital markets. Investors’ irrationality and lack of professionalism further aggravate market volatility. Research on resource allocation of multilevel capital market systems and the effectiveness of the transmission mechanism has certain theoretical significance and practical value.

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Section: Transmission Effectiveness Of Resource Allocation Efficiencymentioning

confidence: 99%

Transmission Effectiveness of Resource Allocation Efficiency in Multitier Capital Market System

Xiaoyuan

2021

Discrete Dynamics in Nature and Society

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“…While it is seen that there is positive co-relation with proper incentives and adoption of GB seen in countries such as the US, Canada and the UK. Hsieh, Claresta, and Bui in (2020) claim that corporate governance policies implemented to align shareholders' and managers' interests, such as higher institutional holdings positively impact company's resource allocation for green initiatives. Kongab and He in (2021) found out that supply side government policies can boost development of GBT.…”

Section: Lack or Misplacement Of Government Incentivesmentioning

confidence: 99%

Barriers to Adoption of Commercial Green Buildings in India: A Review

Saha

Hiremath

Prasad

et al. 2021

Journal of Infrastructure Development

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The global construction sector accounts for 13.2% of the world’s gross domestic product (GDP). It not only contributes to the economic growth engine of the world but also climate changes due to its high energy footprint. Sustainable buildings have the potential to reduce the adverse impacts of the construction industry, but their adoption is slow due to hindrances. The aim of this paper is to study literature on barriers to green building adoption to date and highlight the overlapping and unique barriers specific to India in comparison to a few prominent countries, and provide solutions and recommendations for future research. The methodology has been an extensive literature review of the barriers to green building (GB) adoption. The key findings, namely barriers, were classified under economic, governmental, organizational and social perception, information, technology and material categories. Barriers unique to India and a few other developing countries are an extension of project schedules, lack of research and developmental works, lack of public motivation, poor building code enforcement, high payback period, uncertain supply of green materials, improper implementation of policy framework and performance of green building technologies (GBT’s). The GB construction sector is fragmented around the world. Even the GB definition is not the same across the globe although the environmental aspect is the same. Similarly, there are unique and overlapping challenges in GB adoption globally. Buildings in usage perspectives can be classified into residential and non-residential. This study looks only at non-residential GBs due to their homogenous nature. There is a dearth of specific studies related to the adoption of GBs in India. This study aims to fulfil the gap of India’s standing in the barriers to GB adoption with respect to the developed and developing countries. JEL Classification: I18

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“…They distinguish between profitability from a building life cycle perspective by major market participants and economic viability perspective by developers and occupants. Hsieh et al [58] shifts the discussion from owner's benefits to an examination of capital markets including institutional investors and building green. Their findings indicate that the cost of equity capital for the development of LEED certification green buildings was lower.…”

Section: Institutional Investorsmentioning

confidence: 99%

Decisions by Key Office Building Stakeholders to Build or Retrofit Green in Toronto’s Urban Core

Ensign

Roy²,

Brzustowski³

2021

Sustainability

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The environmental impact of greenhouse gas emissions from buildings—especially in global cities such as Toronto—is well documented. Green mitigation of new and existing buildings has also been researched. Few studies, however, have focused on the decision to build or retrofit green. Are key stakeholders in Toronto’s office building sector aligning their decisions to achieve sustainable environmental goals? Do they support LEED certification regardless of the impact on market valuation? Are tenants willing to pay higher rents in LEED office buildings? The study first obtained data on 16 LEED and 52 conventional buildings to determine if LEED certification has a significant impact on net asking rent. Pearson correlation and linear regression analysis did not find LEED certification to be statistically significant in explaining the variance in net asking rent (market value). The second stage included interviews with senior executives engaged in Toronto’s office building sector. The expert informtabants were asked to assess if financial drivers are the deciding factor in decisions to pursue LEED certification. They concurred that LEED certification is not the primary driver. It is a combination of numerous factors that overall have an impact on a firm’s financial bottom line.

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Green Building, Cost of Equity Capital and Corporate Governance: Evidence from US Real Estate Investment Trusts

Cited by 16 publications

References 58 publications

Transmission Effectiveness of Resource Allocation Efficiency in Multitier Capital Market System

Transmission Effectiveness of Resource Allocation Efficiency in Multitier Capital Market System

Barriers to Adoption of Commercial Green Buildings in India: A Review

Decisions by Key Office Building Stakeholders to Build or Retrofit Green in Toronto’s Urban Core

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