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The monthly returns on equity and mortgage real estate investment trusts (REITs) are analyzed over the period July 1976 to December 1992. The results indicate that risk premiums on equity REITs are significantly related to risk premiums on a market portfolio of stocks as well as to the returns on mimicking portfolios for size and book‐to‐market equity factors in common stock returns. Mortgage REIT risk premiums are significantly related to the three stock market factors and two bond market factors in returns. Also, mortgage REIT shares underperform by an average of 6.8% per year.

For the sample period of 1985 and 1986, captive real estate investments trusts (REITs) have a larger bid‐ask spread than noncaptive REITs, after controlling for trading volume, price volatility, insider holdings, institutional holdings and firm size. Based on the bid‐ask spread literature, the results suggest that captive firms are subject to a greater degree of information asymmetry. This implies a higher cost of capital for captive firms. The evidence here and the trend toward self‐administered REITs imply that information asymmetry and conflicts of interests within REITs are priced.

Two empirical models are used to implement the arbitrage pricing theory: the factor loading model (FLM) and the macrovariable model (MVM). The ability of these models is compared to explain real estate returns using equity REIT returns as a proxy. Two tests are performed. The results show that while the 2 models perform equally well during the 1974-1979 period, the MVM outperforms the FLM over the periods 1980-1985 and 1986-1991. Both models suggest superior financial performance for EREITs relative to other investments in the market during the period 1980-1985.

Two empirical models are used to implement the arbitrage pricing theory: the factor loading model (FLM) and the macrovariable model (MVM). This study compares the ability of these two models to explain real estate returns using equity REIT returns as a proxy. Two tests are performed: a comparison of crosssectional adjusted‐R2's and the Davidson and Mackinnon test. The results show that while the two models perform equally well during the period 1974–1979, the MVM outperforms the FLM over the periods 1980–1985 and 1986–1991. In addition, both models suggest superior financial performance for EREITs relative to other investments in the market during the period 1980–1985.

We investigate why real estate investment trusts (REITs) still engage in open-market repurchases given the unique 95 percent payout requirement. We provide evidence that the motivations for REITs to repurchase stocks are different from those of unregulated firms found by the existing literature. Instead of using funds from operations, REITs appear to finance stock repurchases by issuing new debt and/or selling assets and investments. Unlike ordinary corporations, REITs stock repurchases are not motivated by cash distribution, capital structure, and undervalued equity. However, REITs are more likely to buy back stocks when employees own a higher level of stock options. Also, we find that REITs are more likely to buy back stocks when they have a higher institutional ownership and/or inside ownership. [PUBLICATION ABSTRACT]

Through a series of economic reforms, China (PRC) is transforming its economy into a market-oriented one. China possesses the potential to become the biggest market for US industrial and consumption products in the coming decades. Acknowledging this potential, many US companies are eager to enter trade relations with China. The ability to adapt to the Chinese business environment requires not only up-to-date knowledge about the country and the industry concerned, but also a good personal relationship to solve problems arising from the entire business process. Effective personal contact can greatly help to solve problems arising from the negotiation, production and delivery process. The best way to deal with delay and other problems is to get the right person at every business stage with the ultimate authority in decision making. The reason why personal contact carries such importance is the mysterious element of \"friendship\" in Chinese business culture. Friendship is commonly used by the Chinese in judging the potential of a successful business.

A study provides a closer look at the warehouse building market in a typical southern metropolitan area. A geographic information system (GIS) is used to create and apply distance and neighborhood variables along with conventional property variables to examine warehouse occupancy rates. The results indicate that use of GIS technology provides useful information for estimating occupancy rates, an important part of the valuation process. Further, GIS can also be used to produce maps to depict such information as where buildings are clustered and where buildings with different occupancy rates are located.

This dissertation explores the agency problems of REITs caused by the conflicts of interest between the REIT sponsor and the REIT shareholders. It also tests the impact of the agency problems on the pricing of REIT initial public offerings (IPOs) and on the valuation effects of secondary debt and equity offerings. Like the IPOs of ordinary corporations, REIT IPOs are also underpriced; however, the magnitude of the underpricing is far lower than that of the IPOs for ordinary corporations. Captive REITs have greater underpricing in IPOs than non-captive REITs. REIT secondary equity offerings exhibit negative announcement effects, while secondary debt offerings show no announcement effects. Captive REITs do not have significantly different valuation effects for secondary debt and equity offerings than those of non-captive REITs.

This study is the first to incorporate comprehensive regional factors into the analysis of the variations of apartment rent in a particular metropolitan area. A Geographic Information Systems (GIS) procedure is developed to generate regional variables for the analysis. Results show that not only the individual apartment's characteristics, but also the regional factors are important in determining apartment rents.