Academic Journal
Does asset location and concentration explain REIT IPO valuation?
| العنوان: | Does asset location and concentration explain REIT IPO valuation? |
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| المؤلفون: | Ling, David C., Marcato, Gianluca, Zheng, Chen |
| المصدر: | Ling , D C , Marcato , G & Zheng , C 2022 , ' Does asset location and concentration explain REIT IPO valuation? ' , Real Estate Economics , vol. 50 , no. 3 , pp. 672-706 . https://doi.org/10.1111/1540-6229.12327 |
| سنة النشر: | 2022 |
| مصطلحات موضوعية: | REITs, IPOs, Herfindahl index, investor base, geographic concentration, /dk/atira/pure/subjectarea/asjc/2000/2003, name=Finance, /dk/atira/pure/subjectarea/asjc/2000/2002, name=Economics and Econometrics |
| الوصف: | Following recent developments in the asset pricing literature on geographic concentration, we complement classic theories based on information asymmetry and explain the short-run performance of real estate investment trust (REIT) initial public offerings (IPOs) through an investor base mechanism. We analyze the U.S. market and show that issuers are more likely to underprice when a REIT is more geographically concentrated. In particular, by adopting an identification strategy of pre- and post-IPO returns, we find evidence for an investor base channel rather than a diversification discount channel. In addition, geographic portfolio concentration has a stronger impact on the initial returns of REIT IPOs than property type concentration. Finally, we find that lower deadweight costs at the time of an IPO weaken the influence of geographic concentration on initial returns. Our results are robust to the firm's geographic concentration in economically defined regions, different measures of deadweight costs, the control of information environment of the portfolio and headquarters markets, and to controlling for the REIT's property type focus. |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| Relation: | https://researchportal.bath.ac.uk/en/publications/9abe024b-6c8d-4fea-b013-1adc23b4ed7a |
| DOI: | 10.1111/1540-6229.12327 |
| الاتاحة: | https://researchportal.bath.ac.uk/en/publications/9abe024b-6c8d-4fea-b013-1adc23b4ed7a https://doi.org/10.1111/1540-6229.12327 http://www.scopus.com/inward/record.url?scp=85087300372&partnerID=8YFLogxK |
| Rights: | info:eu-repo/semantics/openAccess |
| رقم الانضمام: | edsbas.994A75D2 |
| قاعدة البيانات: | BASE |
| DOI: | 10.1111/1540-6229.12327 |
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