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| Board of Director Monitoring and Firm
Value in REITs Author: H. Swint Friday and G. Stacy Sirmans Start Page: 411 Abstract: This article examines
the influence of board of director composition and characteristics on real estate
investment trust (REIT) shareholder wealth as measured by firm market-to-book ratios.
Results show that increased outside director representation on the board leads to
increased market-to-book ratios up to a point. However, as outside representation becomes
too large, the market discounts REIT shares. In addition, a positive relationship is
observed between REIT market-to-book ratios and the dollar values of director ownership,
providing support for alignment benefits associated with increased director stock
ownership. |
