Who Follows REITs?
Elizabeth Devos (),
Erik Devos (),
Seow Eng Ong () and
Andrew C. Spieler ()
Additional contact information
Elizabeth Devos: Eastern Michigan University
Andrew C. Spieler: Hofstra University
Journal of Real Estate Research, 2016, vol. 38, issue 1, 129-164
This paper provides evidence that analysts who issue recommendations for REITs are primarily associated with investment banks that are active in underwriting such as full service banks and syndicate banks. Analysts at brokerage houses and independent research houses rarely issue REIT recommendations These findings suggest that underwriting activities are an important reason for investment banks and their analysts to issue recommendations for REITs. We find that recommendations are optimistic for all types of investment banks after Regulation FD, but optimistic recommendations only hold in a univariate setting for syndicates and brokerages. When we compare recommendations for REITs and non-REITS, we find differences in the type of banks that issue the recommendations and the level of optimism. These systematic differences do not diminish over time. We explore additional characteristics that can affect recommendation optimism for REITs and find that around the time of a REIT SEO, book runners of that issue become more optimistic. These findings are consistent with a conflict of interest explanation. We further find that analysts of higher ranked investment (bulge) banks tend to be less optimistic which suggests that reputational concerns may curb some of the optimism.
JEL-codes: L85 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/forth/vol38n01/9853-05.129_164.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:38:n:1:2016:p:129-164
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
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 ().