smallbar.gif (1928 bytes)
Are Real Estate IPOs a Different Species? Evidence from Hong Kong  IPOs

Author:
Su H. Chan,  Mark H. Stohs, Ko Wang

Start Page: 337
End Page: 356
Volume: 21
Issue Number: 3
Year: 2001
Publication: Journal of Real Estate Research

Abstract: It is well documented that in the United States, real estate investment trust (REIT) initial public offerings (IPOs) have an abnormally low initial-day return when compared to that of industrial firm IPOs. Researchers suspect that the abnormal return pattern of REIT IPOs is caused by their unique real estate holdings. Examination of 399 IPOs issued in Hong Kong during the 1986-1997 period reveals strong evidence that suggests that underlying real estate holdings cannot be the sole reason for the observed low initial-day return of REIT IPOs. This investigation indicates that there is a need to re-think the current explanations for the abnormal performance of REIT IPOs.

download.gif (981 bytes)