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REIT Stock Splits and Market Efficiency

  • William Hardin

    ()

  • Kartono Liano

    ()

  • Gow-Cheng Huang

    ()

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    An analysis of real estate investment trust (REIT) stock splits is presented. Evaluation of the initial reaction to split REITs supports efficient market pricing where REITs generate statistically significant positive announcement date returns, no statistically significant record date returns, and muted ex-date returns. In the long-term, split REITs do not consistently out perform benchmark portfolios over one-year, two-year, and three-year periods. REITs split subsequent to a substantial run up in stock price and to improve the position of their post split stock price relative to the stock price of the typical REIT. Copyright Springer Science + Business Media, Inc. 2005

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    File URL: http://hdl.handle.net/10.1007/s11146-005-6409-8
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    Article provided by Springer in its journal The Journal of Real Estate Finance and Economics.

    Volume (Year): 30 (2005)
    Issue (Month): 3 (April)
    Pages: 297-315

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    Handle: RePEc:kap:jrefec:v:30:y:2005:i:3:p:297-315
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    11. So, Raymond W & Tse, Yiuman, 2000. " Rationality of Stock Splits: The Target-Price Habit Hypothesis," Review of Quantitative Finance and Accounting, Springer, vol. 14(1), pages 67-84, January.
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