[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2010_201.html
   My bibliography  Save this paper

Elective Stock Dividends And Reits: Evidence From Reit Dividend Policy During The Financial Crisis

Author

Listed:
  • Desmond Tsang
  • Erik Devos
  • Andrew Spieler
Abstract
In response to the recent financial crisis, the U.S. Government introduced new rules which allow REITs to issue elective stock dividends (ESD) to satisfy their distribution requirements. The goal of these rules was to provide temporary relief to REITs facing cash flow problems. We investigate how the introduction of these rules affected dividend policy of REITs. Surprisingly, we document that only 17 REITs chose to issue elective stock dividends. We examine the characteristics of these REITs and find that their cash flows are similar to REITs who did not select these dividends. This suggests that REITs cash flow problems are unlikely to be a determinant of the elective stock dividend issuance decision. Instead, our findings indicate that the choice to pay elective stock dividends is related to the level of loans that are close to maturity, REIT size, growth opportunities, and poor performance during financial crisis.

Suggested Citation

  • Desmond Tsang & Erik Devos & Andrew Spieler, 2010. "Elective Stock Dividends And Reits: Evidence From Reit Dividend Policy During The Financial Crisis," ERES eres2010_201, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2010_201
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2010-201
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2010_201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.