The Effects of Tax Reforms on REITs: An International Empirical Study

24 Pages Posted: 4 Jul 2011

See all articles by Yishuang Xu

Yishuang Xu

the University of Hong Kong

Edward Chung Yim Yiu

University of Auckland Business School

Date Written: January 24, 2010

Abstract

Tax exemption is one of the REIT’s most unique characteristics. To improve the development of REITs market, the Congress had passed several Tax Reform Acts. Plenty of previous study had already explored the effects of tax legislation changing on REITs market. However the findings had not come to consensus. This might because most of them explored this topic by event study, which cannot control other events happening on the even dates. This paper tries to avoid the complications encountered in previous research by investigating the tax reform effects through the normal panel model with the data in the United States and then retest the hypothesis by a novel empirical model with panel market data in both U.S. and Australia. The results provide evidence that the Tax Reforms would truly affect the REIT’s performance with more solid empirical evidences. Furthermore, the results shed light on the tax policy and governance of a REITs market.

Keywords: REITs, Tax benefits, International Study

Suggested Citation

XU, Yishuang and Yiu, Edward Chung Yim, The Effects of Tax Reforms on REITs: An International Empirical Study (January 24, 2010). Available at SSRN: https://ssrn.com/abstract=1878505 or http://dx.doi.org/10.2139/ssrn.1878505

Yishuang XU (Contact Author)

the University of Hong Kong ( email )

room533, knowles building
the University of Hong Kong
Hong Kong, 999999
Hong Kong

Edward Chung Yim Yiu

University of Auckland Business School ( email )

Sir Owen G Glenn Building
12 Grafton Road
Auckland, 1024
New Zealand
+64 923 3913 (Phone)

HOME PAGE: http://https://unidirectory.auckland.ac.nz/people/profile/edward-yiu

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