REIT Stock Splits and Market Efficiency
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An analysis of real estate investment trust (REIT) stock splits is presented. Evaluation of the initial reaction to split REITs supports efficient market pricing where REITs generate statistically significant positive announcement date returns, no statistically significant record date returns, and muted ex-date returns. In the long-term, split REITs do not consistently out perform benchmark portfolios over one-year, two-year, and three-year periods. REITs split subsequent to a substantial run up in stock price and to improve the position of their post split stock price relative to the stock price of the typical REIT.
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- REIT Stock Splits and Market Efficiency
The Journal of Real Estate Finance and Economics
Volume 30, Issue 3 , pp 297-315
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- stock split
- market efficiency
- behavioral finance
- long-term performance
- short-term performance
- Industry Sectors
- Author Affiliations
- 1. Department of Finance and Economics, Mississippi State University, Box 9580, Mississippi State, MS, 39762-9580, USA
- 2. Department of Finance and Economics, Mississippi State University, Box 9580, Mississippi State, MS, 39762-9580, USA
- 3. Department of Accounting and Finance, Alabama State University, P.O. Box 271, Montgomery, AL, 36117, USA