Volume
28,
Number 2, 2006 of the Journal of Real Estate Research
Do Management Changes
Matter?
An Empirical Investigation of REIT Performance
G. Stacy
Sirmans
Kenneth G. Bacheller Professor in Real
Estate
Department of Risk Management/Insurance,
Real Estate and Business Law
College of Business, Room 248 RBB
Florida State University
Tallahassee, FL 32306-1110
Email:
ssirman@cob.fsu.edu |
H. Swint Friday
Associate Professor of Finance
Department of Finance
College of Business, Room DW 201C
Texas A&M University ? Corpus ChristiCorpus Christi, TX 78412
Email: sfriday@cob.tamucc.edu |
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Russell M. Price
Doctoral Student
Department of Finance
College of Business
Florida State University
Tallahassee, FL 32306-1110
Email: rmp02g@fsu.edu |
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Abstract:
Management’s (board of directors or executive
officers) contribution to a firm is difficult to directly observe, although
stock return performance can be a source of information. This study
addresses this issue by extending the work of McIntosh, Rogers, Sirmans and
Liang (1994) by analyzing management changes within REITs from 1984 to 2002.
The findings indicate a significant relationship between negative
performance and a management change from a period three months prior to the
change in management. Logit and probit analysis are used to determine
whether negative firm performance (measured by its relationship to market
returns) can predict the likelihood of a management change. No predictive
ability is found.
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