The ex-dividend pricing of REITs Article

Hardin, WG, Liano, K, Huang, GC. (2002). The ex-dividend pricing of REITs . 30(4), 533-549. 10.1111/1540-6229.t01-1-00049

cited authors

  • Hardin, WG; Liano, K; Huang, GC

fiu authors

abstract

  • Past studies have shown that ex-dividend stock prices are not fully reflective of dividend payments. A tax-induced clientele effect and micromarket limitations in stock pricing have been used to explain this pricing anomaly, This study focuses on the ex-dividend behavior of real estate investment trusts (REITs). Due to a low correlation between dividend size and dividend yield, REITs permit a cleaner examination of a tax-induced clientele effect. The results indicate that tick constraints in pricing ex-dividend stocks create the appearance of a taxinduced clientele effect in REITs when none should exist.

publication date

  • January 1, 2002

Digital Object Identifier (DOI)

start page

  • 533

end page

  • 549

volume

  • 30

issue

  • 4