How Gender Diversity Shapes Cities: Evidence from Risk Management Decisions in REITs

Avis Devine (), Isabelle Jolin (), Nils Kok () and Erkan Yönder ()
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Avis Devine: York University
Isabelle Jolin: Concordia University
Nils Kok: Maastricht University
Erkan Yönder: Concordia University

Journal of Business Ethics, 2024, vol. 189, issue 4, No 5, 723-741

Abstract: Abstract In this paper, we study the impact of CEO and board gender diversity on the risk management decisions of 179 U.S. Real Estate Investment Trusts (REITs) during the 2001–2018 period. Using a bottom-up analysis on the properties in REIT portfolios, we find significant risk reduction associated with gender-diverse REIT leadership. We document that REITs with a woman CEO, in combination with more women on the board, display less active trading and a longer hold period for assets. In addition, REITs with more gender-diverse leadership are more geographically focused, which for REITs is considered a lower risk investment strategy. Finally, REITs with more gender-diverse leadership are more actively investing in environmentally sustainable real estate. We conclude that gender diversity in real estate firms carries real-life implications for U.S. cities, given their key role as developers, owners, and operators of the built world.

Keywords: Board diversity; Gender; Real estate; Risk preferences; Cities; Green buildings (search for similar items in EconPapers)
JEL-codes: G12 G20 J16 R3 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10551-023-05563-1

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