Empirical investigations on share repurchase programs by real estate investment trusts (REITs)

This study investigates share repurchase programs by Real Estate Investment Trusts (REITs). First, we use survey methodology to obtain information regarding share repurchase programs directly from managers of REITs. Second, using the survey results along with the theoretical arguments from finance theory, we employ logit analysis to find factors affecting share repurchase decisions. Third, we examine the role executive stock options may play in share repurchase decisions. Our results indicate that there is a statistically significant differences between share repurchasing and nonrepurchasing REITs and that executive stock options also play a role in share repurchase decisions made by REITs.