REIT Valuation: A Global Perspective

39 Pages Posted: 15 Jul 2017  

Pawan Jain

University of Wyoming - College of Business - Department of Economics and Finance; Central Michigan University

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

Jain, Pawan, REIT Valuation: A Global Perspective (July 9, 2017). Available at SSRN:

Pawan Jain (Contact Author)

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
Laramie, WY 82071-3985
United States

Central Michigan University ( email )

Mt. Pleasant, MI 48858
United States

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