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Stock Price and Management Changes: The Case of REITs
Author(s) -
Mclntosh Willard,
Rogers Ronald C.,
Sirmans C. F.,
Liang Youguo
Publication year - 1994
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00646
Subject(s) - real estate investment trust , stock (firearms) , shareholder , stock price , economics , business , financial economics , monetary economics , finance , real estate , corporate governance , mechanical engineering , paleontology , series (stratigraphy) , engineering , biology
This paper examines the relationship between a Real Estate Investment Trust's (REIT's) stock returns and top management changes. The results indicate an inverse relationship between the probability of a management change and a REIT's recent stock price performance. This is consistent with internal monitoring of management activities by the board of directors, other top managers, or large block shareholders.