R E I T Organizational Structure and Operating Characteristics
- Topics:
- Real Estate Portfolio Management
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Overview: The article asserts that as a corporate organizational form, real estate investment trusts (REITs) fall into two competing property management structures: internally advised and externally advised. This study tests the hypothesis that, due to their superior ability to resolve conflicts of interests between REIT management and shareholders, internally-advised REITs will dominate the externally-advised REITs. We also test the hypothesis that larger REITs will come to dominate the market and find support for this hypothesis. The results confirm that externally-advised REITs are responding to market pressure to conform to the performance standards set by newer, internally-advised REITs.
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Format: PDF | Size: 107KB | Date: Jan 2001 | Pages: 22



