Board of Director Monitoring and Firm Value in REITs

H. Swint Friday () and G. Stacy Sirmans ()
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H. Swint Friday: Deaprtment of Finance University of South Alabama Mobile, Alabama 36688-0002, http://mcob.usouthal.edu/econ%20&%20finance/index.html
G. Stacy Sirmans: Deaprtment of Real Estate Florida State University Tallahassee, Florida 32306-1042, http://www.cob.fsu.edu/

Journal of Real Estate Research, 1998, vol. 16, issue 3, pages 411-427

Abstract: This article examines the influence of board of director composition and characteristics on real estate investment trust (REIT) shareholder wealth as measured by firm market-to-book ratios. Results show that increased outside director representation on the board leads to increased market-to-book ratios up to a point. However, as outside representation becomes too large, the market discounts REIT shares. In addition, a positive relationship is observed between REIT market-to-book ratios and the dollar values of director ownership, providing support for alignment benefits associated with increased director stock ownership.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1998
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