REIT stock splits and market efficiency Article

Hardin, WG, Liano, K, Huang, GC. (2005). REIT stock splits and market efficiency . JOURNAL OF REAL ESTATE FINANCE AND ECONOMICS, 30(3), 297-315. 10.1007/s11146-005-6409-8

cited authors

  • Hardin, WG; Liano, K; Huang, GC

authors

abstract

  • 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. © 2005 Springer Science + Business Media, Inc.

publication date

  • May 1, 2005

published in

Digital Object Identifier (DOI)

start page

  • 297

end page

  • 315

volume

  • 30

issue

  • 3