Do REIT investors care? An investigation into the market response to the public release of SEC comment letter correspondences

IF 2.1 Q2 URBAN STUDIES

Journal of Property Research Pub Date : 2021-04-06 DOI:10.1080/09599916.2021.1903067

Liesa Schrand, J. Freybote, Wolfgang Schaefers

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引用次数: 5

Abstract

ABSTRACT The Securities and Exchange Commission (SEC) in the US reviews REIT financial statements at least every three years. In these reviews, it adopts the perspective of an investor in evaluating the disclosure of REITs and asks questions an investor would ask. If any disclosure deficiencies are identified, the SEC sends a comment letter to the REIT requesting clarification, more discussion or corrections/improvements in future filings. We investigate the response of REIT investors to the public release of comment letter correspondences between the SEC and publicly traded equity REITs as well as the impact of different types of SEC comments on this response. Using a sample of 395 comment letter correspondences for annual reports (10-Ks) over the period of 2006 to 2019, we find a negative stock market response. Business-related SEC comments are most important in explaining the market response, but only for less transparent REITs. Our results suggest that SEC comment letters may improve the information environment for certain types of REITs by providing new information relevant to forecasting future cash flows and/or signalling information about a REIT’s reporting quality.

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REIT投资者关心吗？对美国证券交易委员会公开发布评论信函的市场反应的调查

摘要美国证券交易委员会（SEC）至少每三年审查一次REIT财务报表。在这些审查中，它采用了投资者的视角来评估REITs的披露，并提出了投资者会提出的问题。如果发现任何披露缺陷，美国证券交易委员会将向房地产投资信托基金发送一封评论信，要求在未来的文件中进行澄清、更多讨论或更正/改进。我们调查了REIT投资者对公开发布美国证券交易委员会和公开交易股票REITs之间的评论信通信的反应，以及不同类型的美国证券交易会评论对这一反应的影响。使用2006年至2019年期间395封年度报告（10 Ks）的评论信信函样本，我们发现股市反应为负面。与商业相关的SEC评论在解释市场反应方面最为重要，但仅适用于透明度较低的REITs。我们的研究结果表明，美国证券交易委员会的评论信可能会通过提供与预测未来现金流相关的新信息和/或传达有关REIT报告质量的信息来改善某些类型REITs的信息环境。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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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.