Keywords
REITs, soft information, SEOs, content analysis, underpricing
Abstract
Using a sample of 1,429 seasoned equity offerings (SEOs) by real estate investment trusts (REITs), we use content analysis to test whether the soft information in a company’s offering prospectus influences SEO underpricing. After controlling for relevant variables, we find that companies that use more positive (negative) words in their filings are negatively (positively) related to SEO underpricing. We posit that in REIT SEOs more positive and fewer negative words decrease investor pricing uncertainty (fear) of the offer and as a result experience less underpricing.
Original Publication Citation
Soft Information and the Underpricing of REIT Seasoned Equity Offerings, with Troy Carpenter, Jim Cicon, and Shelly Howton, Journal of Real Estate Portfolio Management, Vol 27, Iss. 2, 2021, 137-148.
BYU ScholarsArchive Citation
Brau, James C.; Carpenter, J. Troy; Cicon, James E.; and Howton, Shelly, "Soft Information and the Underpricing of REIT Seasoned Equity Offerings" (2021). Faculty Publications. 9193.
https://scholarsarchive.byu.edu/facpub/9193
Document Type
Peer-Reviewed Article
Publication Date
2021
Publisher
Journal of Real Estate Portfolio Management
Language
English
College
Marriott School of Business
Department
Finance
Copyright Status
© 2021 American Real Estate Society
Copyright Use Information
https://lib.byu.edu/about/copyright/