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The Impact of the Sarbanes-Oxley Act on the Structure of REIT Boards of Directors

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  • Magdy Noguera

Abstract

The changes in the board structure for REITs for the period 1999–2005 are presented. Post-SOX REIT boards have changed primarily in the form of greater independence, as fewer REIT boards are led by their CEOs due to SOX. In the relation between Post-SOX board structure and performance, the results show no improvement in performance for REITs whose boards have a majority of preferred features. That is, REITs with small boards, majority of outside directors, and not led by their CEOs do not perform better than their counterparts. These results provide additional fuel for the debate on the benefits and costs of SOX. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Magdy Noguera, 2012. "The Impact of the Sarbanes-Oxley Act on the Structure of REIT Boards of Directors," The Journal of Real Estate Finance and Economics, Springer, vol. 45(4), pages 869-887, November.
    • Handle: RePEc:kap:jrefec:v:45:y:2012:i:4:p:869-887
    DOI: 10.1007/s11146-011-9303-6
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    Cited by:

    1. Magdy Noguera & Erick Paulo Cesar Chang, 2014. "Socio Emotional Wealth Preservation in the REIT Industry: An Exploratory Study," IJFS, MDPI, vol. 2(3), pages 1-20, July.

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    More about this item

    Keywords

    Board structure; Corporate governance; the Sarbanes-Oxley Act; REIT performance; G30; G34; G38; K22; M14;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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