The Information Content of the 1999 Announcement of Funds From Operations (FFO) Changes for Real Estate Investment Trusts

Topics:
Market Studies
Tags:
Accounting,
Business Operations,
Finance,
Investment,
Real Estate,
REIT
Source:
Kansas State University

FREE Registration is required

Overview: This paper examines the market response to the 1999 announcement of a change in accounting for Funds from Operations (FFO) for Real Estate Investment Trusts (REITs). This change provides an increase in transparency in the accounting statements of REITs regarding the calculation of FFO. An analysis of this announcement finds that shareholder wealth increases but the significance of that increase is questionable. Additionally, an analysis of the adverse selection component of the bid/ask spread finds weak evidence to support the conjecture that the amount of information asymmetry in REIT prices declines after the announcement of the FFO accounting change.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 201KB | Date: Apr 2005 | Pages: 22

People who downloaded this item also downloaded

White Paper Cash Flows Versus Earnings in the Valuation of Equity REITs
White Paper Report on REITs: An Introduction to Real Estate Investment Trusts
White Paper Finance, Investment, and Investment Performance: Evidence From the REIT Sector
White Paper Basic Valuation of a Real Estate Investment Trust (REIT)
White Paper The Impact of Interest Rates on Real Estate Investment Trusts

Top results from Market Studies

Case Study High-End Real Estate Company JBMRA Puts Brokers in Prime Position to Increase Sales with Microsoft Dynamics CRM Live
White Paper Next-Generation, Low-Latency Front-Office Computing for Capital Markets
White Paper Testing Alternative Theories of the Property Price - Trading Volume Correlation
White Paper Real Estate Industry Poised for Recovery Despite Slowing Economy
White Paper In An Uncertain Economy, Real Estate Holds Its Ground

» View all Market Studies listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).