Journal of Economics and Finance

, Volume 43, Issue 1, pp 143–161 | Cite as

The impact of the new real estate sector on REITs: an event study

  • Phillip FullerEmail author
  • Ehab Yamani
  • Geungu Yu


This paper examines the impact of reclassifying equity Real Estate Investment Trust (REITs) in the S&P 500 by transferring them from the Financials sector to a new Global Industry Classification Standard sector named Real Estate in an event-study context. The creation of the new sector had a significant impact on REITs included in the new Real Estate sector. Prior to the event date, REITs experienced significant negative returns. But after the event date, REITs also experienced significant positive returns which dissipated over time. The returns prior to (after) the event date would have resulted in a retail investor incurring losses (gains). While the magnitude of the trading volume increased noticeably prior to the event date, overall trading volume was not discernibly impacted.


REITs Event-study methodology Abnormal return Trading volume S&P additions 

JEL Classification

G14 C10 


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018
corrected publication April/2018

Authors and Affiliations

  1. 1.Jackson State UniversityJacksonUSA
  2. 2.College of Business, Tanta UniversityTantaEgypt

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