Do REIT Announcements of Open Market Repurchase Programs Signal Value Changes in Rivals?

Dean Diavatopoulos, Andy Fodor, Shawn Howton and Shelly Howton

Journal of Real Estate Portfolio Management, 2010, vol. 16, issue 2, 131-140

Abstract: Executive Summary. This paper examines the short- and long-run equity returns for REITs that do not announce open market repurchases when a rival real estate investment trust (REIT) announces a repurchase. Prior research finds evidence of significant positive returns to the announcing REITs, on average, but does not examine the effect of the announcement on rival REITs. We find evidence of a significant negative reaction for nonannouncing rival REITs over the event window. The returns are directly related to the previous four week return for non-announcing REITs and inversely related to the firm's market-to-book ratio and volatility of returns. Both the announcing firms and their non-announcing rivals significantly outperform the broader equity market on a risk-adjusted basis in the two years following the repurchase announcement.

Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2010.12089872 (text/html)
Access to full text is restricted to subscribers.

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:taf:repmxx:v:16:y:2010:i:2:p:131-140

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/repm20

DOI: 10.1080/10835547.2010.12089872

Access Statistics for this article

Journal of Real Estate Portfolio Management is currently edited by Peng Liu and Vivek Sah

More articles in Journal of Real Estate Portfolio Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().