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| Institutional Investment in REITs:
Evidence and Implications Author: Su Han Chan, Wai Kin Leung, and Ko Wang Start Page: 357 Abstract: It has been documented
that institutional investors did not participate actively in the real estate investment
trust (REIT) stock market prior to 1990 and that the percentage of institutional holdings
of a REIT stock is positively correlated with the performance of the REIT stock. This
article documents a reversal in trend in institutional investors’ preference for
investing in REIT stocks and in other stocks. The study shows that prior to 1990,
institutional investors invested more of their funds in other stocks than in REITs,
whereas after 1990 they invest more of their funds in REITs than in other stocks in the
market. The strategies of institutional investors investing in REITs are also analyzed.
The findings of the study have implications for the agency and corporate control issues
prevailing in the REIT stock market. |
