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作者

David C. Ling;Chongyu Wang;Tingyu Zhou

来源

REAL ESTATE ECONOMICS,Vol.49,Issue1,P.287-331

语言

英文

关键字

作者单位

Correspondence Email: david.ling@warrington.ufl.edu; chongyu.wang@ufl.edu; tzhou@business.fsu.edu;Correspondence Email: david.ling@warrington.ufl.edu; chongyu.wang@ufl.edu; tzhou@business.fsu.edu;Correspondence Email: david.ling@warrington.ufl.edu; chongyu.wang@ufl.edu; tzhou@business.fsu.edu

摘要

Using a sample of Real Estate Investment Trusts (REITs), we show that institutional investors exploit location‐based information asymmetries by overweighting firms headquartered locally and those with greater economic interests in the investor's home metropolitan statistical area (MSA). This asset allocation strategy is associated with superior portfolio performance. In a difference‐in‐difference‐in‐differences analysis of investor headquarters relocations, we find that investors tend to increase their ownership of REITs that have property holdings in the market to which the investor relocates. Our findings highlight the importance of understanding the relation between information advantages and the geography of firm's operations, as well as the implications on ownership patterns and portfolio construction.