Title
The conditional performance of REIT stock repurchases
Document Type
Article
Publication Title
Journal of Real Estate Finance and Economics
Publication Date
3-1-2006
Abstract
This paper uses a conditional performance measure to test whether real estate investment trust (REIT) managers announcing stock repurchases have private information about their firms' prospects. We use stock price to condition for public information and measure the managers' implied private information by the covariance between repurchase size and subsequent stock payoffs (or operating performance). Results show that managers have private information but mostly with respect to long-term as opposed to near-term payoffs. We also find that repurchase size is positively related to a stock's idiosyncratic return volatility, perhaps because noisy stocks deviate farther from fundamental value, offering informed managers larger profit potential. © Springer Science + Business Media, Inc. 2006.
Volume
32
Issue
2
First Page
129
Last Page
149
DOI
10.1007/s11146-006-6011-8
Recommended Citation
Giambona, E., Golec, J., & Giaccotto, C. (2006). The conditional performance of REIT stock repurchases. Journal of Real Estate Finance and Economics, 32 (2), 129-149. https://doi.org/10.1007/s11146-006-6011-8
ISSN
08955638
