39 Pages Posted: 15 Jul 2017
Date Written: July 9, 2017
Prior empirical evidence regarding the impact of dividend taxes, corporate taxes, and corporate governance on firm valuation is inconclusive. This study avoids some of the complications encountered in previous empirical work by exploiting institutional characteristics of REITs, such as their limited discretion over dividend policy and the relative transparency of REIT assets. Using data from 32 global stock exchanges, I find that investors capitalize dividend taxes in REIT’s market valuation. I also show that REITs headquartered in countries with stringent restrictions on REITs investment opportunities have higher market value. Finally, the results document that investors assign negative values to REITs that retain earnings and have a weaker corporate governance mechanism.
Keywords: Global REITs, REIT regulation, Dividend, Taxes
JEL Classification: G11, G12, G14, G15
Suggested Citation: Suggested Citation
Jain, Pawan, REIT Valuation: A Global Perspective (July 9, 2017). Available at SSRN: https://ssrn.com/abstract=2999450