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Global REIT regulations and valuation

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  • Gogineni, Sridhar
  • Jain, Pawan
  • Upadhyay, Arun

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.

Suggested Citation

  • Gogineni, Sridhar & Jain, Pawan & Upadhyay, Arun, 2024. "Global REIT regulations and valuation," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 152-166.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pb:p:152-166
    DOI: 10.1016/j.iref.2024.04.022
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