Dividend Manipulation at Unlisted Reits

49 Pages Posted: 14 Nov 2018

Date Written: Winter 2018

Abstract

Dividend policy at unlisted firms is confounded by the continuous equity offering—as exists for unlisted REITs. Unlisted firms lack visible share prices, which heightens the sensitivity of investors to dividends paid during the offering. By paying high dividends early, managers of unlisted REITs positively influence the flow of new equity. Dividend manipulation occurs when discretionary yields are exceptionally high and predominantly favorable dividend changes occur during the equity offering, followed by a surge in unfavorable changes after the offering. Evidence of dividend manipulation at unlisted REITs is provided where even discretionary yields are significantly reduced once the offering expires.

Suggested Citation

Wiley, Jonathan, Dividend Manipulation at Unlisted Reits (Winter 2018). Real Estate Economics, Vol. 46, Issue 4, pp. 887-935, 2018. Available at SSRN: https://ssrn.com/abstract=3283258 or http://dx.doi.org/10.1111/1540-6229.12193

Jonathan Wiley (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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