REIT Cash Flows and Stock Returns

Authors

  • Olgun Fuat Sahin Saint Louis University

DOI:

https://doi.org/10.33423/jaf.v20i3.3009

Keywords:

accounting, finance, REITs, cash flows, returns, funds from operations

Abstract

I examine the association between cash flow measures based on financial statements information and stock market returns of REITs. The topic is relevant for decision makers in formulating investment actions. I use cash flow measures identified by Foerster, Tsagarelis, and Wang (2017) as having significant predictive power in explaining future returns. I also use REIT specific cash flow measure, funds from operations (FFO). I do not confirm the findings of Foerster, Tsagarelis, and Wang (2017) for REITs. Results based on REIT FFO are identical to the other cash flow measures. These findings suggest that further research is necessary to establish if market environment or research design or both may be responsible for results.

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Published

2020-08-23

How to Cite

Sahin, O. F. (2020). REIT Cash Flows and Stock Returns. Journal of Accounting and Finance, 20(3). https://doi.org/10.33423/jaf.v20i3.3009

Issue

Section

Articles