Global REIT regulations and valuation Article

Gogineni, S, Jain, P, Upadhyay, A. (2024). Global REIT regulations and valuation . INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 93 152-166. 10.1016/j.iref.2024.04.022

cited authors

  • Gogineni, S; Jain, P; Upadhyay, A

authors

abstract

  • We make three contributions to the real estate investment trust (REIT) and global business literature in this paper. First, we provide the first comprehensive overview of the REIT regulatory framework across 32 countries. Second, we examine the effect of dividend taxes on REITs and find that on average, investors in most countries capitalize dividend taxes in REIT valuation. These results lend support to agency-based explanation of retained earnings and are robust to country-level tax policies on retained earnings. Third, we find that REITs domiciled in countries with stringent operational restrictions and effective governance systems are associated with higher valuations. Our paper highlights the role played by regulatory frameworks and institutional settings in the valuation of REITs.

publication date

  • June 1, 2024

published in

Digital Object Identifier (DOI)

start page

  • 152

end page

  • 166

volume

  • 93