The conditional performance of REIT stock repurchases

Erasmo Giambona, Joseph Golec, Carmelo Giaccotto

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


This paper uses a conditional performance measure to test whether real estate investment trust (REIT) managers announcing stock repurchases have private information about their firms' prospects. We use stock price to condition for public information and measure the managers' implied private information by the covariance between repurchase size and subsequent stock payoffs (or operating performance). Results show that managers have private information but mostly with respect to long-term as opposed to near-term payoffs. We also find that repurchase size is positively related to a stock's idiosyncratic return volatility, perhaps because noisy stocks deviate farther from fundamental value, offering informed managers larger profit potential.

Original languageEnglish (US)
Pages (from-to)129-149
Number of pages21
JournalJournal of Real Estate Finance and Economics
Issue number2
StatePublished - Mar 2006
Externally publishedYes


  • Conditional performance
  • Noisy rational expectations
  • REITs
  • Stock repurchases

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Urban Studies


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