AN EXAMINATION OF PRIMARY AND SECONDARY MARKET RETURNS IN EQUITY REIT IPOS

Sinan Gokkaya (), Michael J. Highfield (), Kenneth D. Roskelley () and Dennis F. Steele ()
Additional contact information
Sinan Gokkaya: Ohio University
Michael J. Highfield: Mississippi State University
Kenneth D. Roskelley: Mississippi State University
Dennis F. Steele: Southern Adventist University

Journal of Real Estate Research, 2015, vol. 37, issue 1, 23-64

Abstract: We examine primary and secondary market returns for REIT initial public offerings (IPOs). Consistent with theories regarding compensation for information production during the roadshow, we find offer-to-open returns are directly related to partial adjustment and are significantly lower for REITs holding assets in a single-property type. Matching REIT IPOs to comparable non-REIT IPOs, we also find evidence consistent with demand uncertainty. Specifically, after controlling for issue and firm characteristics, REITs post significantly lower secondary market returns despite similar primary market returns. This suggests that demand uncertainty resolves more quickly for REITs, possibly due to higher relative transparency.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/new_current/vol37n01/9840-02.23_64.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:37:n:1:2015:p:23-64

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().