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SPECULATIVE TRADING IN REITS
Author(s) -
Blau Benjamin M.,
Whitby Ryan J.
Publication year - 2014
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/jfir.12028
Subject(s) - real estate investment trust , boom , real estate , financial economics , monetary economics , business , economics , bust , finance , environmental engineering , engineering
The recent extremes in the real estate economic cycle have created an ideal setting to investigate the role of speculative trading. Specifically, we focus on speculative trading in real estate investment trusts (REITs) during the recent boom and bust in real estate. Although we find a strong relation between speculative trading in REITs and the economic cycle, we do not find evidence that speculative trading is related to future returns. Our results suggest that although increased speculative trading is apparent in REITs during the boom years, the level of speculative trading in REITs does not appear to affect the quality of markets at large.