Impact of Environmental Investments on Corporate Financial Performance: Decomposing Valuation and Cash Flow Effects
Research paper by A. Devine and E. Yonder (2021) | Asset Management, Risk Mitigation, Valuation
Environmentally sustainable investment enhances firm performance through both cash‑flow improvements and valuation gains. Analysis using an instrumental‑variable approach shows that U.S. REITs with greener portfolios command valuation premiums that exceed operating benefits, face lower systematic risk, and experience reduced uninformed trading in office…
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