Tone in REIT financial statements and institutional investments

IF 2.1 Q2 URBAN STUDIES

Journal of Property Research Pub Date : 2019-07-03 DOI:10.1080/09599916.2019.1650802

Riëtte Carstens, J. Freybote

{"title":"Tone in REIT financial statements and institutional investments","authors":"Riëtte Carstens, J. Freybote","doi":"10.1080/09599916.2019.1650802","DOIUrl":null,"url":null,"abstract":"ABSTRACT We investigate the response of institutional REIT investors to the abnormally (net) positive tone in REIT financial statements. For non-REIT firms, sophisticated investors have been found to respond negatively to an abnormally positive tone due to managerial incentives to take advantage of information asymmetries and use a positive tone to manipulate investor perception. However, institutional REIT investors have an informational advantage as they either directly invest in commercial real estate as part of their portfolio management strategy or, at a minimum, have access to commercial real estate market data. Thus, they are able to evaluate the abnormally positive tone in REIT financial statements against their perception of conditions in the commercial real estate and derivative REIT market. For a sample of US REITs over the period of 2001 to 2017, we find that the response of institutional investors to the abnormally positive tone in REIT financial statements is time-varying and non-linear, irrespective of whether we use variables in levels or changes. In particular, in periods of institutional REIT investor optimism (pessimism), institutional REIT investors respond positively (negatively) to an abnormally positive tone and behave as net buyers (net sellers).","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"227 - 244"},"PeriodicalIF":2.1000,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1650802","citationCount":"7","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Property Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/09599916.2019.1650802","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"URBAN STUDIES","Score":null,"Total":0}

引用次数: 7

Abstract

ABSTRACT We investigate the response of institutional REIT investors to the abnormally (net) positive tone in REIT financial statements. For non-REIT firms, sophisticated investors have been found to respond negatively to an abnormally positive tone due to managerial incentives to take advantage of information asymmetries and use a positive tone to manipulate investor perception. However, institutional REIT investors have an informational advantage as they either directly invest in commercial real estate as part of their portfolio management strategy or, at a minimum, have access to commercial real estate market data. Thus, they are able to evaluate the abnormally positive tone in REIT financial statements against their perception of conditions in the commercial real estate and derivative REIT market. For a sample of US REITs over the period of 2001 to 2017, we find that the response of institutional investors to the abnormally positive tone in REIT financial statements is time-varying and non-linear, irrespective of whether we use variables in levels or changes. In particular, in periods of institutional REIT investor optimism (pessimism), institutional REIT investors respond positively (negatively) to an abnormally positive tone and behave as net buyers (net sellers).

查看原文本刊更多论文

房地产投资信托基金财务报表和机构投资的基调

摘要：我们调查了机构REIT投资者对REIT财务报表中异常（净）积极基调的反应。对于非房地产投资信托公司，由于管理层利用信息不对称并使用积极语气操纵投资者感知的动机，成熟的投资者对异常积极的语气会做出负面反应。然而，机构REIT投资者具有信息优势，因为他们要么直接投资商业房地产，作为其投资组合管理战略的一部分，要么至少可以获得商业房地产市场数据。因此，他们能够根据他们对商业房地产和衍生品房地产投资信托市场状况的看法来评估房地产投资基金财务报表中异常积极的基调。对于2001年至2017年期间的美国REITs样本，我们发现机构投资者对REIT财务报表中异常积极基调的反应是时变的和非线性的，无论我们使用的是水平变量还是变化变量。特别是，在机构REIT投资者乐观（悲观）的时期，机构REIT的投资者对异常积极的语气做出积极（消极）的反应，表现为净买家（净卖家）。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Property Research URBAN STUDIES-

CiteScore

3.80

自引率

5.30%

发文量

期刊介绍： The Journal of Property Research is an international journal. The title reflects the expansion of research, particularly applied research, into property investment and development. The Journal of Property Research publishes papers in any area of real estate investment and development. These may be theoretical, empirical, case studies or critical literature surveys.