Real earnings management, liquidity risk and REITs SEO dynamics

• Main Authors: DENG, Xiaoying, ONG, Seow Eng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Real estate investment trust; Seasoned equity offerings; Liquidity risk; Real earnings management; Finance and Financial Management; Real Estate
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7232
• Institution: Singapore Management University

We analyze how REITs managers use real earnings management to address issues of liquidity risk and increased cost of capital they face during seasoned equity offerings. We show that REITs managers engage in real earnings management instead of accrual earnings management to attract more uninformed tr...