Real estate investment trusts during market shocks

Impact and resilience

Bibliographic Data

ID21689371
AuthorsApostolos Ampountolas (0000-0003-3992-6663, Boston University, corresponding author), Mark Legg (0000-0002-5172-9964, Penn State Berks, USA), Gordon Shaw (0000-0002-7135-2105, University of Exeter)
Year2024
Volume30
Issue6
Pages1557-1579
Publication date2024-09-01
Open AccessYes
TypeARTICLE
VenueTourism Economics (JOURNAL)
Journal identifiersISSN: 1354-8166 • E-ISSN: 2044-0375
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/13548166231219740
OpenAlexW4389439991
LanguageEN
Citations received3
References cited27

The market value of a stock is a function of firm performance and market sentiment. Specific events can alter returns and present several challenges to market performances. Through an event study design, this study examines five real estate investment trusts (REITs) market indices’ responses to market shock from the initial COVID-19 outbreak. The results revealed negative cumulative abnormal returns for lodging, health care, and retail REITs over the 20-day trading window. Considering their lower drawdown losses, the remaining REIT sectors showed greater resilience than their counterparts. Block bootstrapping confirmed the returns were significantly worse for all sectors, with retail and lodging sectors having the poorest returns. This study advances the literature on pandemic-related market crashes along with how COVID-19 affected cross-sector REIT equities compared to other market indices. REIT firms can use the findings to develop more effective policy measures as responses to pandemic market conditions

Business · Economics · Event study · Monetary economics · Real estate · Real estate investment trust · Stock market · Financial Markets and Investment Strategies · Housing Market and Economics · Insurance and Financial Risk Management · Finance

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Open DOIOpen Access