IDEAS home Printed from https://ideas.repec.org/a/taf/rjerxx/v37y2015i1p23-64.html
   My bibliography  Save this article

An Examination of Primary and Secondary Market Returns in Equity REIT IPOs

Author

Listed:
  • Sinan Gokkaya
  • Michael J. Highfield
  • Kenneth Roskelley
  • Dennis F. Steele

Abstract

We examine primary and secondary market returns for real estate investment trust (REIT) initial public offerings (IPOs). Consistent with theories regarding compensation for information production during the roadshow, we find offer-to-open returns are directly related to partial adjustment and are significantly lower for REITs holding assets in a single property type. Matching REIT IPOs to comparable non-REIT IPOs, we also find evidence consistent with demand uncertainty. Specifically, after controlling for issue and firm characteristics, REITs post significantly lower secondary market returns despite similar primary market returns. This indicates that demand uncertainty resolves more quickly for REITs, possibly due to higher relative transparency.

Suggested Citation

  • Sinan Gokkaya & Michael J. Highfield & Kenneth Roskelley & Dennis F. Steele, 2015. "An Examination of Primary and Secondary Market Returns in Equity REIT IPOs," Journal of Real Estate Research, Taylor & Francis Journals, vol. 37(1), pages 23-64, January.
    • Handle: RePEc:taf:rjerxx:v:37:y:2015:i:1:p:23-64
    DOI: 10.1080/10835547.2015.12091409
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2015.12091409
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2015.12091409?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjerxx:v:37:y:2015:i:1:p:23-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjer20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.