The effect of ESG Rating on Credit Rating for Firms of Real Estate
(2020) NEKN02 20201Department of Economics
- Abstract
- The purpose of this study is to investigate the effect of ESG ratings on firm’s credit ratings for real estate investment trusts in the USA. Through a quantitative research methodology, a panel data regression analysis is used in order to examine the effect of ESG rating on firms’ credit ratings. The sample used in our study consists of a set of unbalanced panel data consisting of 3,470 firm-month observations representing 50 unique REITs in the USA over the period 2009-2017. We find that total ESG rating has a significant positive effect on credit rating. Our results show that in order for REITs to enhance their credit rating in relation to CSR activities, they should focus essentially on the environmental dimension’s activities, and... (More)
- The purpose of this study is to investigate the effect of ESG ratings on firm’s credit ratings for real estate investment trusts in the USA. Through a quantitative research methodology, a panel data regression analysis is used in order to examine the effect of ESG rating on firms’ credit ratings. The sample used in our study consists of a set of unbalanced panel data consisting of 3,470 firm-month observations representing 50 unique REITs in the USA over the period 2009-2017. We find that total ESG rating has a significant positive effect on credit rating. Our results show that in order for REITs to enhance their credit rating in relation to CSR activities, they should focus essentially on the environmental dimension’s activities, and partially on the governance dimension’s activities, while social dimension’s activities are estimated to be inessential. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9016230
- author
- Sadia, Jad LU and Palmquist, Sissa
- supervisor
- organization
- course
- NEKN02 20201
- year
- 2020
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Credit Rating, ESG, Corporate Social Responsibility, Corporate Social Performance, Real Estate Investment Trusts.
- language
- English
- id
- 9016230
- date added to LUP
- 2020-08-29 11:21:01
- date last changed
- 2020-08-29 11:21:01
@misc{9016230, abstract = {{The purpose of this study is to investigate the effect of ESG ratings on firm’s credit ratings for real estate investment trusts in the USA. Through a quantitative research methodology, a panel data regression analysis is used in order to examine the effect of ESG rating on firms’ credit ratings. The sample used in our study consists of a set of unbalanced panel data consisting of 3,470 firm-month observations representing 50 unique REITs in the USA over the period 2009-2017. We find that total ESG rating has a significant positive effect on credit rating. Our results show that in order for REITs to enhance their credit rating in relation to CSR activities, they should focus essentially on the environmental dimension’s activities, and partially on the governance dimension’s activities, while social dimension’s activities are estimated to be inessential.}}, author = {{Sadia, Jad and Palmquist, Sissa}}, language = {{eng}}, note = {{Student Paper}}, title = {{The effect of ESG Rating on Credit Rating for Firms of Real Estate}}, year = {{2020}}, }