Excess returns around the expiration of the IPO quiet period documented for industrial IPOs are minimal for REITs, supporting the argument that REITs are more transparent than other firms. The existence of analyst coverage im- pacts quiet period returns for REITs only during the pre-bubble period when coverage is less compre- hensive. The frequency of analyst recommenda- tions issued immediately after the quiet period for REITs is lower than for industrial IPOs, which again suggests greater REIT transparency since there is an implied lower need for coverage. Recommenda- tions in number and in simple buy or sell catego- rization have a slight impact on returns. With mar- ginal statistical significance, the small number of firms followed by four or more analysts posts ex- cess returns while the very small number of firms with no buy recommendations posts negative ex- cess returns.
