In a setting of intense competition for international capital companies diligently have to respond to an increasing demand by investors for higher transparency and more effective mechanisms of corporate control. In this context the term ìcorporate governanceî has attracted major attention in the professional sphere and across different areas of academic research. From a theoretical as well as from a professional perspective the most important issue with respect to corporate governance is whether it is rewarded by the capital market. Using corporate governance data of a leading database, this study empirically investigates the impact of corporate governance on the valuation of publicly traded real estate companies for five major real estate capital markets worldwide.