Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market

This study examines the initial day return of REIT IPOs using a sample of 174 U.S. Real Estate Investment Trust (REIT) IPOs during the period 1995 to 2014 and finds a significant 2.69% underpricing. The study employs OLS regression analysis to investigate the determinants of initial day return of U....

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Main Author: Zhang, Tian
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/30028/
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author Zhang, Tian
author_facet Zhang, Tian
author_sort Zhang, Tian
building Nottingham Research Data Repository
collection Online Access
description This study examines the initial day return of REIT IPOs using a sample of 174 U.S. Real Estate Investment Trust (REIT) IPOs during the period 1995 to 2014 and finds a significant 2.69% underpricing. The study employs OLS regression analysis to investigate the determinants of initial day return of U.S. REIT IPOs. Offering size and UPREIT are statistically significant and positively related to initial day return. On the other hand, offering price, mortgage REITs and New York Stock Exchange show statistically significant negative relationship with initial day return. In addition, the study reports that initial day return is closely related to return for 1 month after IPO and return for 6 months after IPO at the 1% significance level. The impact of market condition on REITs’ performance after IPO is not observed.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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spelling nottingham-300282018-01-30T22:39:10Z https://eprints.nottingham.ac.uk/30028/ Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market Zhang, Tian This study examines the initial day return of REIT IPOs using a sample of 174 U.S. Real Estate Investment Trust (REIT) IPOs during the period 1995 to 2014 and finds a significant 2.69% underpricing. The study employs OLS regression analysis to investigate the determinants of initial day return of U.S. REIT IPOs. Offering size and UPREIT are statistically significant and positively related to initial day return. On the other hand, offering price, mortgage REITs and New York Stock Exchange show statistically significant negative relationship with initial day return. In addition, the study reports that initial day return is closely related to return for 1 month after IPO and return for 6 months after IPO at the 1% significance level. The impact of market condition on REITs’ performance after IPO is not observed. 2015-09-16 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/30028/1/dissertation%20-%20Tian.pdf Zhang, Tian (2015) Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market. [Dissertation (University of Nottingham only)]
spellingShingle Zhang, Tian
Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market
title Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market
title_full Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market
title_fullStr Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market
title_full_unstemmed Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market
title_short Determinants and Impacts of Initial Day Return of REIT IPOs: Evidence from U.S. REITs Market
title_sort determinants and impacts of initial day return of reit ipos: evidence from u.s. reits market
url https://eprints.nottingham.ac.uk/30028/