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Assessing The Linkages Between Corporate Social Esponsibility and A-Reit Performance

Author/s: Graeme Newell, Hsu Wen Peng, Sharon Yam

Date Published: 1/01/2011

Published in: Volume 17 - 2011 Issue 3 (pages 370 - 387)

Abstract

Corporate social responsibility (CSR) has taken on increased significance in the property sector in recent years. This paper assesses the level of CSR practices by A-REITs across the environmental, social and governance dimensions of CSR and compares this to other ASX sectors. A number of unique CSR A-REIT performance indices are developed for A-REIT investors committed to the principles of CSR, and their added-value assessed via risk-adjusted performance analysis and their portfolio diversification benefits. Importantly, these CSR A-REIT indices do not significantly under-perform the conventional A-REIT indices, as well as providing portfolio diversification benefits. The CSR A-REIT investment implications are also highlighted.

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Keywords

Benchmarking - Corporate Social Responsibility - Csr a-Reit Performance Index - Portfolio Diversification - Risk-Adjusted Returns - a-Reits

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