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Women Directors and Australian Reit Performance

Author/s: Bill Dimovski, Luisa Lombardi, Chris Ratcliffe, Barry J Cooper

Date Published: 1/01/2014

Published in: Volume 20 - 2014 Issue 1 (pages 3 - 11)

Abstract

This paper follows Noguera’s (2012) study on factors that might influence the return on asset (ROA) performance of REITs, including the engagement of more non-executive directors and more female directors. Using Australian data, the ROA performance of 37 Australian Real Estate Investment Trusts (A-REITs) from 2008 to 2011 is examined. As with Noguera (2012), larger A-REITs are found to tend to have higher ROA performance and A-REITs that employ more debt fare more poorly. However, the findings show that the proportion of non-executive directors and female directors are not statistically related to such performance. A Tobin’s Q measure is also used to provide a more market-based metric of A-REIT performance. The Tobin Q measure shows improved market values for A-REITs over 2010 and 2011 while those with an “office” focus tend to have performed more poorly using this measure. A pooled regression is utilised as well as fixed and random effects approaches to investigate factors influencing REIT performance. The findings suggest useful implications for A-REIT investors and boards.

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Keywords

A-Reits - Performance

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