Does Investing in ESG Pay Off? Evidence from REITs. (with Ryan G. Chacon and Zhonghua Wu). Journal of Real Estate Finance and Economics, 2025, 71(2), 587–614.
This paper investigates whether ESG investment is associated with better outcomes for global equity REITs. Using GRESB ESG performance data from 2019 to 2021, we document that REITs with higher ESG performance scores exhibit lower firm value, lower operating cash flow, and higher firm risk. The findings suggest that REIT management may overinvest in ESG activities at the expense of shareholder value, providing the first evidence of ESG overinvestment in the REIT sector.
Commercial Real Estate in the Face of Climate Risk: Insights from REITs. (with Ran Lu-Andrews and Zhonghua Wu). Journal of Real Estate Research, 2025, 47(4), 435–463.
This paper studies how climate risk affects commercial real estate through the lens of publicly traded REITs. We construct a firm-level climate risk measure using county temperature data from the National Oceanic and Atmospheric Administration, combined with a detailed property-level dataset of U.S. equity REITs from 1995 to 2020. The paper documents that climate risk is reflected in REIT cash flows and firm value and contributes to the climate finance literature by focusing on commercial real estate assets and the role of public real estate markets in pricing physical climate risk.
Unleashing the Power of ChatGPT in Finance Research: Opportunities and Challenges. (with Gangqing Hu, Bingxin Li, and Jinge Wang). Financial Innovation, 2025, 11(1), 93.
This paper examines how ChatGPT and related natural language processing tools can support academic finance research. We illustrate applications, including analyzing financial charts, providing coding support, and assisting with the theoretical derivation of financial models. We also discuss recent advances in multimodal learning, such as Visual Referring Prompting, for enhancing image analysis capabilities, and conduct a comparative analysis of ChatGPT-3.5, ChatGPT-4, and Microsoft Bing to examine their distinct features, strengths, and weaknesses. The paper addresses ethical considerations and pitfalls relevant to the responsible adoption of large language models in finance research and practice.
ESG Disclosure, REIT Debt Financing and Firm Value. (with Zhonghua Wu). Journal of Real Estate Finance and Economics, 2023, 67(3), 388–422.
This paper examines how ESG disclosure relates to REIT debt financing and firm value, using publicly available GRESB ESG disclosure data for REITs worldwide. REITs with higher ESG disclosure exhibit a lower cost of debt, higher credit ratings, and a higher ratio of unsecured debt to total debt, suggesting that improved ESG disclosure enhances access to capital markets and supports corporate financial flexibility. Firm value is also positively associated with ESG disclosure, and using the COVID-19 pandemic as a quasi-experimental setting, the paper shows that REITs with higher pre-pandemic ESG disclosure levels exhibit higher firm value during the pandemic.
Employee Productivity and REIT Performance. (with William G. Hardin III and Zhonghua Wu). Real Estate Economics, 2022, 50(1), 59-88.
This paper examines the relation between employee productivity and REIT performance. Using a sample of U.S. equity REITs from 2003 to 2017, we estimate parameters of a firm-level production function correcting for endogenous input choices and show that labor is a statistically significant input in REIT production. REIT operating efficiency and financial performance are negatively associated with previous year employee instability, a proxy for turnover, and positively associated with several lagged employee productivity measures, indicating that a stable and motivated workforce improves REIT operating efficiency and performance. The paper contributes by highlighting human capital as an important but often overlooked driver of real estate firm performance.
REIT Operational Efficiency: Performance, Risk and Return. (with Eli Beracha and William G. Hardin III) . Journal of Real Estate Finance and Economics, 2019, 58(3), 408-4
This paper studies operational efficiency in REITs and its implications for performance, risk, and return. We define an operational efficiency ratio at the REIT level, where a higher ratio indicates a less efficient REIT, and show that more operationally efficient REITs deliver stronger return on assets and return on equity, exhibit lower credit risk and lower total risk, and earn higher cross-sectional stock returns. A portfolio of highly efficient REITs earns a higher average return than a portfolio of less efficient REITs. The paper contributes to the REIT literature by establishing operational efficiency as a firm-level driver of both fundamentals and risk-adjusted shareholder value.
With Chia-Chun Chiang and David Harrison
This paper examines how heat stress and climate-related risks affect commercial real estate returns. Using the Paris Agreement as a major climate-policy event, we investigate whether abnormal temperature exposure influences property investment performance and market pricing. The study contributes to the growing literature on climate risk and commercial real estate markets.
Revise and Resubmit at Journal of Real Estate Finance and Economics.
With Rose Lai and Zongyuan Li
Using the Brexit referendum as a natural experiment, this paper explores how firms’ operating and incorporation locations influence stock market reactions to regional shocks. We examine how geographic exposure shapes investor responses and firm valuation during periods of economic and political uncertainty.
Revise and Resubmit at Journal of Empirical Finance.
With Pratik Kothari, Ryan Chacon and Joseph Ooi
This paper investigates how tenant concentration affects the structure of CEO compensation in REITs. We examine whether firms exposed to greater tenant-related risk provide stronger equity-based incentives to align managerial behavior with shareholder interests. The study contributes to the literature on corporate governance, risk, and executive compensation in real estate firms.
Revise and Resubmit at Journal of Real Estate Finance and Economics.
With William Hardin, Daniel Huerta and Thanh Ngo
This paper investigates how investor motivations influence the operational efficiency of REITs. We examine whether differences in investor preferences and investment horizons affect managerial decisions, efficiency outcomes, and firm performance in the real estate sector. The study contributes to the literature on institutional ownership and REIT governance.
Revise and Resubmit at Accounting and Finance.