Tone in REIT financial statements and institutional investments

We investigate the response of institutional REIT investors to the abnormally (net) positive tone in REIT financial statements. For non-REIT firms, sophisticated investors have been found to respond negatively to an abnormally positive tone due to managerial incentives to take advantage of information asymmetries and use a positive tone to manipulate investor perception. However, institutional REIT investors have an informational advantage as...