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A Systems Thinking Approach to Construction Project Management Read chapter Read first chapter

2020 | OriginalPaper | Chapter

Empirical Evidence on the Measurement of Information Asymmetry on the Pricing of REITs on the Johannesburg Stock Exchange

Authors : Oluwaseun Damilola Ajayi, Omokolade Akinsomi

Published in: The Construction Industry in the Fourth Industrial Revolution

Publisher: Springer International Publishing

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Abstract

The no-consensus nature of literature on measuring information asymmetry as it affects the pricing of stocks is fast becoming topical. The paper examines the level of information asymmetry associated with the pricing of 37 real estate investment trusts (SAREITs) over the last ten (10) years (2008–2018). Based on an exhaustive search and yield of unbalanced data from the price section of the I-NET (BFA) McGreggor database, the daily closing and opening price data were of 17 listed REITs were retrieved. The ordinary least square regression (OLS) model was adopted in a bid to test the relationship between information asymmetry other variables. These variables including cumulative bid-ask spread, price volatility, firm size and trading volume of 17 SAREITs (due to availability of relevant data) were controlled and regressed. Findings revealed that SAREITs have a low level of information asymmetry. This suggests that investors are able to make optimum investment decisions.

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Metadata
Title
Empirical Evidence on the Measurement of Information Asymmetry on the Pricing of REITs on the Johannesburg Stock Exchange
Authors
Oluwaseun Damilola Ajayi
Omokolade Akinsomi
Copyright Year
2020
Book
The Construction Industry in the Fourth Industrial Revolution

Print ISBN: 978-3-030-26527-4

Electronic ISBN: 978-3-030-26528-1

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-26528-1_28