6533b855fe1ef96bd12b10c0
RESEARCH PRODUCT
The Underpricing of Spanish REITs When Going Public
José Emilio Farinós ViñasLeticia CastañoAna M. Ibáñezsubject
Information asymmetryPrimary marketCapital structureReal estate investment trustStock marketSample (statistics)BusinessMonetary economicsdescription
This study analyses underpricing in a sample of 41 Real Estate Investment Trusts (REITs) from the Spanish market between November 2013 and January 2019. The results show a significant underpricing on the initial-day (either when we compute raw or market-adjusted initial returns) concentrated in the primary market. Besides, price adjustment continues until the third day as we find significant raw and market-adjusted buy-and-hold returns. This underpricing is not accounted for by the theories of information asymmetry but instead by some signalling theories related to capital structure, by the pre-listing stock market conditions and by the peculiarities of the market analysed.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-01-01 | SSRN Electronic Journal |