IDEAS home Printed from https://ideas.repec.org/p/afr/wpaper/2019-118.html
   My bibliography  Save this paper

Underwriter Reputation, Market Adjusted Initial Returns And Abnormal Returns: Evidence From Listed Reits On The Johannesburg Stock Exchange

Author

Listed:
  • Oluwaseun Damilola Ajayi
  • Omokolade Akinsomi

Abstract

The paper examined the relationship between underwriter reputation and performance of secondary equity offerings (SEOs) of listed real estate investment trusts (REITs) on the Johannesburg Stock Exchange (JSE). Daily opening and closing price of 37 listed REITs over the last ten (10) years (2008– 2018) were retrieved from the price section of the I-NET (BFA) McGreggor database. The market-adjusted initial day returns, cumulative abnormal returns were estimated using the event study methodology. Independent variables including the issuing price, SEO size, age of firm and leverage of the sample were controlled and regressed adopting the ordinary least squares (multivariate analysis) to estimate the impact of underwriter reputation on performance of listed REITs SEOs. The Carter-Manaster measure provided a significant measure in the estimation of initial returns. Highly reputed underwriters indicated an increase in performance of REITs (and vice-versa) that had issued SEOs within the study period. By implication, REITs who intend to issue SEOs in the nearest future can leverage on the insights provided in this paper by appointing prestigious investment banks for the purpose of underwriting.

Suggested Citation

  • Oluwaseun Damilola Ajayi & Omokolade Akinsomi, 2019. "Underwriter Reputation, Market Adjusted Initial Returns And Abnormal Returns: Evidence From Listed Reits On The Johannesburg Stock Exchange," AfRES 2019-118, African Real Estate Society (AfRES).
    • Handle: RePEc:afr:wpaper:2019-118
    as

    Download full text from publisher

    File URL: https://afres.architexturez.net/doc/oai-afres-id-2019-118
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    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:afr:wpaper:2019-118. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/afresea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.