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The effect of corporate governance on investment: evidence from real estate investment trusts (reits) (2004).
| Content Provider | CiteSeerX |
|---|---|
| Author | Hartzell, Jay C. Sun, Libo Titman, Sheridan |
| Abstract | This study investigates the relation between governance mechanisms and firms’ investment choices using a sample of Real Estate Investment Trusts (REITs). Since REITs provide a relatively accurate measure of Tobin’s q, a transparent structure, and generally less asymmetric information about their investment opportunities, they provide an especially good sample to evaluate these issues. In contrast to earlier studies, we fail to find a strong relation between corporate governance mechanisms and Tobin’s q. However, we do find evidence that the responsiveness of REITs ’ investment expenditures to their opportunities depends on their corporate governance structures. In particular, the investment choices of REITs are more closely tied to Tobin’s q if they have greater institutional ownership. |
| File Format | |
| Publisher Date | 2004-01-01 |
| Access Restriction | Open |
| Content Type | Text |
