Investor Overconfidence in REIT Stock Trading

Lin, Crystal Yan; Rahman, Hamid; Yung, Kenneth

doi:10.1080/10835547.2010.12089866

Cited by 13 publications

(16 citation statements)

References 22 publications

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“…Previous studies on real estate investor sentiment use either indirect measures such as the closed‐end fund discount (Barkham and Ward , Clayton and MacKinnon , Lin, Chiang and Lee , Lin, Rahman and Yung ) or direct survey measures (Clayton, Ling and Naranjo , Ling, Naranjo and Scheick ) as sentiment measures. A shortcoming of these studies is that they employ an undifferentiated view of investor sentiment.…”

Section: Methodsmentioning

confidence: 99%

“…While an extensive literature investigates the sentiment of REIT investors ( e.g . Barkham and Ward , Clayton and MacKinnon , Chiang and Lee , Lin, Rahman and Yung ), no previous study investigates whether REITs trade on sentiment when investing in the commercial real estate market. An exception, Eichholtz and Yönder () find that overconfident CEOs affect the trading activity of REITs in the commercial real estate market.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Our study addresses a shortcoming of previous studies on REIT and commercial real estate investor sentiment, which employ an undifferentiated view of investor sentiment (Barkham and Ward , Clayton and MacKinnon , Chiang and Lee , Lin, Rahman and Yung , Ling, Naranjo and Scheick ). Previous studies such as Devos et al .…”

Section: Introductionmentioning

confidence: 98%

“…We contribute to the existing literature on real estate investor sentiment in a number of ways. First, with the exception of Ling, Naranjo and Scheick (), Clayton, Ling and Naranjo (), and Hendershott, Hendershott and MacGregor (), previous studies focus on investor sentiment in only the REIT market (Barkham and Ward , Clayton and MacKinnon , Chiang and Lee , Lin, Rahman and Yung , Das, Freybote and Marcato, ). This study adds to the understanding of institutional investor sentiment in securitized and unsecuritized real estate markets and its relationship with the sentiment of other investor types.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Heterogeneous Investor Sentiment and Institutional Real Estate Investments

Freybote

Seagraves

2016

Real Estate Economics

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Commercial real estate investors differ in their sentiment due to factors such as market expertise, investment strategies and expectations about future market conditions. Focusing on the office market, we investigate whether investors with a multiasset investment focus such as pension funds or insurance companies rely on the sentiment of specialized real estate investors such as public REITs or private developers/owners as source of information in their investment decision-making. Using disaggregated sentiment measures and vector autoregression (VAR) we find evidence that changes in REIT and private real estate investor sentiment lead to changes in institutional investor sentiment in the suburban office and office REIT market. Our findings suggest that institutional investors rely on the sentiment of specialized real estate investors to make real estate investment decisions. Our study contributes to the existing literature on sentiment in commercial real estate markets by emphasizing the heterogeneity of investor sentiment and introducing a disaggregated sentiment measure. We also contribute to the institutional herding literature.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Heterogeneous Investor Sentiment and Institutional Real Estate Investments

Freybote

Seagraves

2016

Real Estate Economics

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“…Therefore, we are not surprised to find an existing study on this topic using US REIT data. Lin et al (2010) examine overconfidence and trading volume in the US REIT market and found a positive return-volume relation. The finding is in line with evidences derived from stock markets.…”

Section: Investor Overconfidencementioning

confidence: 99%

Overconfidence and Real Estate Research: A Survey of the Literature

Bao

2016

Singapore Econ. Rev.

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Real estate investment has recently been advancing rapidly in both volume and complexity. A sound understanding of behavioral issues in this sector benefits all stakeholders, such as investors, regulators and local residents. We focus on one of the most robust behavioral anomalies in business and finance research: overconfidence. Overconfidence significantly influences financial decision and investment performance. However, theoretical and empirical studies are lacking in real estate sector. We conduct a critical review of the overconfidence literature to bridge this gap, identify future research directions for the study of overconfidence in real estate markets, and suggest strategies to handle technical issues, such as the robustness of overconfidence measurement and data availability. Findings provide useful guidelines for researchers and practitioners to design and implement overconfidence studies in real estate research.

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The Continuing Overreaction in the REIT Market

Liu

2019

J Real Estate Finan Econ

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Investor Overconfidence in REIT Stock Trading

Cited by 13 publications

References 22 publications

Heterogeneous Investor Sentiment and Institutional Real Estate Investments

Heterogeneous Investor Sentiment and Institutional Real Estate Investments

Overconfidence and Real Estate Research: A Survey of the Literature

The Continuing Overreaction in the REIT Market

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