 How Do the CEO Political Leanings Affect REIT Business Decisions?Xiaoying Deng, Paul Anglin, Yanmin Gao and Hua Sun Journal of Real Estate Research, 2021, vol. 43, issue 4, 419-446 Abstract: Business decisions made by the real estate industry have a profound effect on the well-being of people who live, work, or shop in these buildings. While these decisions may be informed by evidence, the available evidence is often incomplete or imperfect. Therefore, the personal opinions or judgments of senior executives can have an effect. In this paper, we study these effects in two parts: risk-taking and environmental, social, and governance (ESG) activities. Since a person’s political learning is a relatively stable measure, and is associated with preferences for risk and ESG activities, we examine how the political leanings of the CEOs are related to these effects. Using the data from 2003 to 2016, we find that real estate investment trusts with Democratic-leaning CEOs tend to take more risks, as evidenced by higher levels of leverage and more risk in stock prices. We further find that Democratic-leaning CEOs are more broadly engaged in environmentally oriented ESG activities. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rjerxx:v:43:y:2021:i:4:p:419-446 Ordering information: This journal article can be ordered from DOI: 10.1080/08965803.2021.2003507 Access Statistics for this article Journal of Real Estate Research is currently edited by William Hardin and Michael Seiler More articles in Journal of Real Estate Research from Taylor & Francis Journals |
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