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How Does Corporate Governance Affect the Quality of Investor Information? The Curious Case of REITs

Listed author(s):
  • Paul Anglin

    ()

    (University of Guelph)

  • Robert Edelstein

    ()

    (University of California at Berkeley)

  • Yanmin Gao

    ()

    (University of Alberta)

  • Desmond Tsang

    ()

    (McGill University)

Recent research suggests that the unique legal and organizational structure of REITs, relative to other types of corporations, may vitiate the need for and the effectiveness of internal corporate governance. Our results indicate that information asymmetry, as measured by the percentage bid-ask spreads demanded by the market, is reduced by appropriately structured REIT governance. Using data during the 2003-2006 period, we find that increasing the financial incentives for board members reduces asymmetric information, and that the combination of experienced board members and independent audit committees with financial expertise diminishes asymmetric information.

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File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol33n01/01.1_24.pdf
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Article provided by American Real Estate Society in its journal journal of Real Estate Research.

Volume (Year): 33 (2011)
Issue (Month): 1 ()
Pages: 1-24

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Handle: RePEc:jre:issued:v:33:n:1:2011:p:1-24
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/
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Order Information: Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Web: http://pages.jh.edu/jrer/about/get.htm Email:


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