REITs and Their Management: An Analysis of Organizational Structure, Performance, and Management Compensation
AbstractThis study examines possible agency problems in Real Estate Investment Trusts (REITs) by contrasting the performance, structure, and compensation of the two REIT forms from 1987 to 1992. Results show that "self-administered" REITs outperformed "advisor" REITs over the sample period even after adjusting for their greater market risk. Ownership structure significantly influences market performance of advisor REITs; low insider-owned advisor REITs both underperform and take on less market risk than other REITs. Ownership does not affect returns or market risk of self-administered REITs. While advisor compensation and chief executive officer salary appear to be strongly related to size, and chief executive officer salary is related to firm performance, there is only limited evidence that ownership structure affects managerial compensation in either REIT type.
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Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 10 (1995)
Issue (Month): 3 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
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