The impact of environmental management on firm performance in the US lodging REITs: The moderating role of outside board of directors

Recently, many firms that have caused direct pollution to the environment have begun to think about the necessity of environmental management. As buildings have played an important role in environmental issues, the real estate industry can no longer ignore demands for environmental management. Research on environmental management has mainly focused on its financial implications. However, there has been no consensus in the literature about the relationship between environmental management and firm performance. By comparing portfolios of environmentally certified properties of 19 lodging Real Estate Investment Trusts, this study explores the relationship between environmental management and firm performance, while taking into account the moderating role of outside board of directors. The relationship between environmental management and firm performance appeared to have mixed results, but this study found a positive moderating effect of outside board of directors. This study provides new insights into the hospitality and the real estate literature from a corporate governance perspective.