Investor sentiment and the SEO pricing process: evidence from REITsDeng, X. ORCID: https://orcid.org/0000-0003-4896-6333, Hrnjic, E. and Ong, S. E. (2014) Investor sentiment and the SEO pricing process: evidence from REITs. The Journal of Real Estate Portfolio Management, 20 (2). pp. 85-110. ISSN 2691-1205 Full text not archived in this repository. It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing. Official URL: https://www.jstor.org/stable/24885556 Abstract/SummaryUsing real estate investment trusts as a unique laboratory, we investigate the impact of investor sentiment on seasoned equity offering (SEO) price dynamics. Evidence indicates that investor sentiment is positively related to pre-SEO overpricing and probability of issuance. SEOs issued in high sentiment periods have larger discounts and higher first day returns. We also find that high sentiment periods are followed by low long-run returns, suggesting that sentiment does not proxy for unobservable fundamentals. Overall, our findings are consistent with market timing and behavioral explanations for equity offerings.
Deposit Details University Staff: Request a correction | Centaur Editors: Update this record |