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Paper eres2017_185:
Financial and Corporate Governance Changes in Public Firms Transitioning from Non-Traded to Exchange-Listed Status: A Clinical Study of REITS

id eres2017_185
authors French, Dan; Thibaut Morillon, Andy Kern, Adam Yore
year 2017
title Financial and Corporate Governance Changes in Public Firms Transitioning from Non-Traded to Exchange-Listed Status: A Clinical Study of REITS
source 24th Annual European Real Estate Society Conference in Delft, Netherlands
summary n this paper, we look at the changes in corporate governance and dividend policy of non-traded REITs’ whose managers elect to list on a stock exchange. Following their listing, we find that transitioning REITs have on average larger, more independent boards and are more likely to have an independent compensation committee and nominating committee. In addition, they have higher CEO compensation, higher board remuneration, and have more institutional owners investing in their shares post-listing. We document that several transitioning REITs complete reverse stock splits right before going public affecting initial shareholders’ wealth negatively. Finally, we find that despite having an FFO payout comparable to that of traded REITs, non-traded REITs have a lower return of capital, a higher dividend payout ratio and pay more of their dividends out of capital than do traded REITs.
keywords non-traded REITS; listing; corporate governance; dividend policy; traded REITS
series ERES:conference
type paper session
discussion No discussions. Post discussion ...
ratings
session Performance & Risk Management
last changed 2017/11/18 16:20
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