The Impact of REIT Ratings on Stock Price and Shareholder Wealth

Klaus S. Beckmann () and ChanghaJin ()
Additional contact information
Klaus S. Beckmann: University of Texas-Pan American, 1201 W. University Drive BA-120H, Edinburg,
ChanghaJin: Hanyang University, AnsanKyunggi-do, South Korea 426-791

International Real Estate Review, 2013, vol. 16, issue 2, 134-146

Abstract: We have analyzed the market reaction to REIT preferred stock ratings announced by Moody's Investors Service from 1999 to 2009 that are related to four types of rating events; first time ratings, outlook changes, reviews and actual rating changes. The results suggest a significant market reaction to rating upgrades of 1.08% abnormal return, and downgrades and negative outlooks of -2.28% and -2.67% abnormal returns, respectively. Compared to the non-REIT literature, the abnormal returns are smaller in magnitude which implies a relatively smaller information asymmetry within the REIT market with diversification opportunities for global investors.

Keywords: REITs; Preferred Stock Rating; Information Asymmetry; Asset Pricing; Investment Strategy (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.gssinst.org/irer/wp-content/uploads/20 ... areholder-wealth.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:ire:issued:v:16:n:02:2013:p:134-146

Ordering information: This journal article can be ordered from
Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850
https://www.gssinst.org/gssinst/index.html

Access Statistics for this article

International Real Estate Review is currently edited by Professor Sing Tien Foo and Professor Ko Wang

More articles in International Real Estate Review from Global Social Science Institute Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850.
Bibliographic data for series maintained by IRER Graduate Assistant/Webmaster ().