IDEAS home Printed from https://ideas.repec.org/a/ire/issued/v16n022013p134-146.html
   My bibliography  Save this article

The Impact of REIT Ratings on Stock Price and Shareholder Wealth

Author

Listed:
  • Klaus S. Beckmann

    () (University of Texas-Pan American, 1201 W. University Drive BA-120H, Edinburg,)

  • ChanghaJin

    () (Hanyang University, AnsanKyunggi-do, South Korea 426-791)

Abstract

We have analyzed the market reaction to REIT preferred stock ratings announced by Moody's Investors Service from 1999 to 2009 that are related to four types of rating events; first time ratings, outlook changes, reviews and actual rating changes. The results suggest a significant market reaction to rating upgrades of 1.08% abnormal return, and downgrades and negative outlooks of -2.28% and -2.67% abnormal returns, respectively. Compared to the non-REIT literature, the abnormal returns are smaller in magnitude which implies a relatively smaller information asymmetry within the REIT market with diversification opportunities for global investors.

Suggested Citation

  • Klaus S. Beckmann & ChanghaJin, 2013. "The Impact of REIT Ratings on Stock Price and Shareholder Wealth," International Real Estate Review, Asian Real Estate Society, vol. 16(2), pages 134-146.
  • Handle: RePEc:ire:issued:v:16:n:02:2013:p:134-146
    as

    Download full text from publisher

    File URL: http://www.umac.mo/fba/irer/papers/past/vol16n2_pdf/01.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    REITs; Preferred Stock Rating; Information Asymmetry; Asset Pricing; Investment Strategy;

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    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:ire:issued:v:16:n:02:2013:p:134-146. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IRER Secretary Office/Webmaster). General contact details of provider: http://www.asres.org/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.