To Change or Not to Change: The Informativeness of REIT Annual Reports

References

• Arikan, O. (2022). The effect of boilerplate language on nonprofessional investors’ judgments. Accounting and Business Research, 52, 417–442. https://doi.org/10.1080/00014788.2021.1922990
   Web of Science ®Google Scholar
• Bao, J. P., Lyon, C., & Lane, P. C. R. (2007). Copy detection in Chinese documents using ferret. Language Resources and Evaluation, 40, 357–365. https://doi.org/10.1007/s10579-007-9020-1
   Web of Science ®Google Scholar
• Berns, J., Bick, P., Flugum, R., & Houston, R. (2022). Do changes in md&a section tone predict investment behavior? Financial Review, 57, 129–153. https://doi.org/10.1111/fire.12280
   Web of Science ®Google Scholar
• Blankespoor, E., deHaan, E., & Marinovic, I. (2020). Disclosure processing costs, investors’ information choice, and equity market outcomes: A review. Journal of Accounting and Economics, 70, 101344. https://doi.org/10.1016/j.jacceco.2020.101344
   Web of Science ®Google Scholar
• Blau, B. M., Nguyen, N., & Whitby, R. J. (2014). The information content of option ratios. Journal of Banking & Finance, 43, 179–187. https://doi.org/10.1016/j.jbankfin.2014.03.023
   Web of Science ®Google Scholar
• Botosan, C. A., & Plumlee, M. A. (2005). Assessing alternative proxies for the expected risk premium. The Accounting Review, 80(1), 21–53.
   Google Scholar
• Boudry, W. I., Kallberg, J. G., & Liu, C. H. (2010). An analysis of reit security issuance decisions. Real Estate Economics, 38, 91–120. https://doi.org/10.1111/j.1540-6229.2009.00255.x
   Web of Science ®Google Scholar
• Brown, S. V., & Tucker, J. W. (2011). Large-sample evidence on firms’ year-over-year md&a modifications. Journal of Accounting Research, 49, 309–346. https://doi.org/10.1111/j.1475-679X.2010.00396.x
   Web of Science ®Google Scholar
• Bushee, B. J., Gow, I. D., & Taylor, D. J. (2018). Linguistic complexity in firm disclosures: Obfuscation or information? Journal of Accounting Research, 56, 85–121. https://doi.org/10.1111/1475-679X.12179
   Web of Science ®Google Scholar
• Callahan, C. M., Smith, R. E., & Spencer, A. W. (2012). An examination of the cost of capital implications of FIN 46. The Accounting Review, 87(4), 1105–1134.
   Google Scholar
• Campbell, J. L., Chen, H., Dhaliwal, D. S., Lu, H-m., & Steele, L. B. (2014). The information content of mandatory risk factor disclosures in corporate filings. Review of Accounting Studies, 19, 396–455. https://doi.org/10.1007/s11142-013-9258-3
   Web of Science ®Google Scholar
• Carstens, R., & Freybote, J. (2019). Tone in reit financial statements and institutional investments. Journal of Property Research, 36, 227–244. https://doi.org/10.1080/09599916.2019.1650802
   Web of Science ®Google Scholar
• Carstens, R., & Freybote, J. (2021). Can the textual tone in reit financial statements improve the information environment for commercial real estate investors? An investigation. Journal of Real Estate Research, 43, 335–354. https://doi.org/10.1080/08965803.2021.1985923
   Web of Science ®Google Scholar
• Cashman, G. D., Harrison, D. M., & Sheng, H. (2021). Option trading and reit returns. Real Estate Economics, 49, 332–389. https://doi.org/10.1111/1540-6229.12256
   Web of Science ®Google Scholar
• Cashman, G. D., Harrison, D. M., & Sheng, H. (2023). Does options trading activity benefit reits? Journal of Real Estate Research, 45(3), 265–299. https://doi.org/10.1080/08965803.2022.2107155
   Web of Science ®Google Scholar
• Cashman, G. D., Harrison, D. M., & Sheng, H. (2022). Short selling and options trading: A tale of two markets. Journal of Financial Research, 45, 313–338. https://doi.org/10.1111/jfir.12276
   Web of Science ®Google Scholar
• Cazier, R. A., McMullin, J. L., & Treu, J. S. (2021). Are lengthy and boilerplate risk factor disclosures inadequate? An examination of judicial and regulatory assessments of risk factor language. The Accounting Review, 96, 131–155. https://doi.org/10.2308/TAR-2018-0657
   Web of Science ®Google Scholar
• Claus, J., & Thomas, J. (2001). Equity premia as low as three percent? Evidence from analysts’ earnings forecasts for domestic and international stock markets. The Journal of Finance, 56, 1629–1666. https://doi.org/10.1111/0022-1082.00384
   Web of Science ®Google Scholar
• Cline, B. N., Fu, X., & Tang, T. (2020). Shareholder investment horizons and bank debt financing. Journal of Banking & Finance, 110, 105656. https://doi.org/10.1016/j.jbankfin.2019.105656
   Web of Science ®Google Scholar
• Cready, W. M., & Mynatt, P. G. (1991). The information content of annual reports: A price and trading response analysis. Accounting Review, 66(2), 291–312.
   Google Scholar
• Danielsen, B., & Harrison, D. (2000). The impact of potential private information on reit liquidity. Journal of Real Estate Research, 19, 49–72. https://doi.org/10.1080/10835547.2000.12091010
   Google Scholar
• Danielsen, B., Harrison, D., Van Ness, R., & Warr, R. (2014). Liquidity, accounting transparency, and the cost of capital: Evidence from real estate investment trusts. Journal of Real Estate Research, 36, 221–252. https://doi.org/10.1080/10835547.2014.12091389
   Web of Science ®Google Scholar
• Dempsey, S. J., Harrison, D. M., Luchtenberg, K. F., & Seiler, M. J. (2012). Financial opacity and firm performance: The readability of reit annual reports. The Journal of Real Estate Finance and Economics, 45, 450–470. https://doi.org/10.1007/s11146-010-9263-2
   Web of Science ®Google Scholar
• D'mello, R., & Shroff, P. K. (2000). Equity undervaluation and decisions related to repurchase tender offers: An empirical investigation. The Journal of Finance, 55, 2399–2424. https://doi.org/10.1111/0022-1082.00292
   Web of Science ®Google Scholar
• Downs, D. H. (1998). The value in targeting institutional investors: Evidence from the five-or-fewer rule change. Real Estate Economics, 26, 613–649. https://doi.org/10.1111/1540-6229.00759
   Web of Science ®Google Scholar
• Dyer, T., Lang, M., & Stice-Lawrence, L. (2017). The evolution of 10-k textual disclosure: Evidence from latent dirichlet allocation. Journal of Accounting and Economics, 64, 221–245. https://doi.org/10.1016/j.jacceco.2017.07.002
   Web of Science ®Google Scholar
• Easton, P. D. (2004). Pe ratios, peg ratios, and estimating the implied expected rate of return on equity capital. The Accounting Review, 79, 73–95. https://doi.org/10.2308/accr.2004.79.1.73
   Web of Science ®Google Scholar
• El-Haj, M., Alves, P., Rayson, P., Walker, M., & Young, S. (2020). Retrieving, classifying and analysing narrative commentary in unstructured (glossy) annual reports published as pdf files. Accounting and Business Research, 50, 6–34. https://doi.org/10.1080/00014788.2019.1609346
   Web of Science ®Google Scholar
• Elyasiani, E., & Jia, J. (2010). Distribution of institutional ownership and corporate firm performance. Journal of Banking & Finance, 34, 606–620. https://doi.org/10.1016/j.jbankfin.2009.08.018
   Web of Science ®Google Scholar
• Elyasiani, E., Jia, J., & Mao, C. X. (2010). Institutional ownership stability and the cost of debt. Journal of Financial Markets, 13, 475–500. https://doi.org/10.1016/j.finmar.2010.05.001
   Web of Science ®Google Scholar
• Ertugrul, M., Lei, J., Qiu, J., & Wan, C. (2017). Annual report readability, tone ambiguity, and the cost of borrowing. Journal of Financial and Quantitative Analysis, 52, 811–836. https://doi.org/10.1017/S0022109017000187
   Web of Science ®Google Scholar
• Fama, E. F., & French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33, 3–56. https://doi.org/10.1016/0304-405X(93)90023-5
   Web of Science ®Google Scholar
• Fama, E. F., & French, K. R. (1997). Industry costs of equity. Journal of Financial Economics, 43, 153–193. https://doi.org/10.1016/S0304-405X(96)00896-3
   Web of Science ®Google Scholar
• Feldman, R., Govindaraj, S., Livnat, J., & Segal, B. (2010). Management’s tone change, post earnings announcement drift and accruals. Review of Accounting Studies, 15, 915–953. https://doi.org/10.1007/s11142-009-9111-x
   Web of Science ®Google Scholar
• Feng, Z., Ghosh, C., & Sirmans, C. F. (2007). On the capital structure of real estate investment trusts (reits). The Journal of Real Estate Finance and Economics, 34, 81–105. https://doi.org/10.1007/s11146-007-9005-2
   Web of Science ®Google Scholar
• Francis, J., LaFond, R., Olsson, P., & Schipper, K. (2005). The market pricing of accruals quality. Journal of Accounting and Economics, 39, 295–327. https://doi.org/10.1016/j.jacceco.2004.06.003
   Web of Science ®Google Scholar
• Gibbon, D., Moore, R., & Winski, R. (1997). Handbook of standards and resources for spoken language system. Walter deGruyter & Co.
   Google Scholar
• Gilstrap, C., Petkevich, A., Sezer, O., & Teterin, P. (2022). REIT debt pricing and ownership structure. The Journal of Real Estate Finance and Economics, 64, 546–589. https://doi.org/10.1007/s11146-020-09806-0
   Web of Science ®Google Scholar
• Giulianelli, M., Sinclair, A., Fernandez, R. (2022). Construction repetition reduces information rate in dialogue. In Proceedings of the 2nd Conference of the Asia-Pacific Chapter of the Asso-Ciation for Computational Linguistics and the 12th International Joint Conference on Natural Language Processing, 665–682.
   Google Scholar
• Gode, D., & Mohanram, P. (2003). Inferring the cost of capital using the ohlson–juettner model. Review of Accounting Studies, 8, 399–431. https://doi.org/10.1023/A:1027378728141
   Web of Science ®Google Scholar
• Green, P., Lane, P. C. R., Rainer, A., & Scholz, S.-B. (2011). Selecting features in origin analysis. 379–392.
   Google Scholar
• Griffin, P. A. (2003). Got information? Investor response to form 10-k and form 10-q edgar filings. Review of Accounting Studies, 8, 433–460. https://doi.org/10.1023/A:1027351630866
   Web of Science ®Google Scholar
• Hardin, W. G., III, Nagel, G. L., Roskelley, K. D., & Seagraves, P. A. (2017). Institutional monitoring, motivated investors, and firm performance. Journal of Real Estate Research, 39, 401–439. https://doi.org/10.1080/10835547.2017.12091479
   Web of Science ®Google Scholar
• Harrison, D. M., Panasian, C. A., & Seiler, M. J. (2011). Further evidence on the capital structure of reits. Real Estate Economics, 39, 133–166. https://doi.org/10.1111/j.1540-6229.2010.00289.x
   Web of Science ®Google Scholar
• Hassan, A., & Barber, S. J. (2021). The effects of repetition frequency on the illusory truth effect. Cognitive Research: Principles and Implications, 6, 38. https://doi.org/10.1186/s41235-021-00301-5
   PubMed Web of Science ®Google Scholar
• Huang, A. H., Wang, H., & Yang, Y. (2023). Finbert: A large language model for extracting information from financial text*. Contemporary Accounting Research, 40, 806–841. https://doi.org/10.1111/1911-3846.12832
   Web of Science ®Google Scholar
• Huang, K., & Petkevich, A. (2016). Corporate bond pricing and ownership heterogeneity. Journal of Corporate Finance, 36, 54–74. https://doi.org/10.1016/j.jcorpfin.2015.11.001
   Web of Science ®Google Scholar
• Huang, X., Hong Teoh, S., & Zhang, Y. (2014). Tone management. The Accounting Review, 89, 1083–1113. https://doi.org/10.2308/accr-50684
   Web of Science ®Google Scholar
• Hutchens, M., & Rego, O. S. (2015). Does greater tax risk lead to increased firm risk? Working Paper.
   Google Scholar
• Johnson, T. L., & So, E. C. (2012). The option to stock volume ratio and future returns. Journal of Financial Economics, 106, 262–286. https://doi.org/10.1016/j.jfineco.2012.05.008
   Web of Science ®Google Scholar
• Kim, D., Lim, D., & Wiley, J. A. (2023). Narrative investment-risk disclosure & reit investment. The Journal of Real Estate Finance and Economics, 66(2), 542–567. https://doi.org/10.1007/s11146-021-09819-3
   Web of Science ®Google Scholar
• Lang, M., & Stice-Lawrence, L. (2015). Textual analysis and international financial reporting: Large sample evidence. Journal of Accounting and Economics, 60, 110–135. https://doi.org/10.1016/j.jacceco.2015.09.002
   Web of Science ®Google Scholar
• Li, F. (2010). The information content of forward-looking statements in corporate filings—a naïve bayesian machine learning approach. Journal of Accounting Research, 48, 1049–1102. https://doi.org/10.1111/j.1475-679X.2010.00382.x
   Web of Science ®Google Scholar
• Ling, D. C., Wang, C., & Zhou, T. (2021). Institutional common ownership and firm value: Evidence from real estate investment trusts. Real Estate Economics, 49, 187–223. https://doi.org/10.1111/1540-6229.12312
   Web of Science ®Google Scholar
• Loughran, T. I. M., & McDonald, B. (2016). Textual analysis in accounting and finance: A survey. Journal of Accounting Research, 54, 1187–1230. https://doi.org/10.1111/1475-679X.12123
   Web of Science ®Google Scholar
• Loughran, T., & Mcdonald, B. (2011). When is a liability not a liability? Textual analysis, dictionaries, and 10-ks. The Journal of Finance, 66, 35–65. https://doi.org/10.1111/j.1540-6261.2010.01625.x
   Web of Science ®Google Scholar
• McClane, J. (2019). Boilerplate and the impact of disclosure in securities dealmaking. Vanderbilt Law Review, 72, 191–296.
   Web of Science ®Google Scholar
• Naiker, V., Navissi, F., & Truong, C. (2013). Options trading and the cost of equity capital. The Accounting Review, 88, 261–295. https://doi.org/10.2308/accr-50275
   Web of Science ®Google Scholar
• Nelson, K. K., & Pritchard, A. C. (2007). Litigation risk and voluntary disclosure: The use of meaningful cautionary language. Working Paper.
   Google Scholar
• Nelson, K. K., & Pritchard, A. C. (2016). Carrot or stick? The shift from voluntary to mandatory disclosure of risk factors. Journal of Empirical Legal Studies, 13, 266–297. https://doi.org/10.1111/jels.12115
   Web of Science ®Google Scholar
• Ohlson, J. A., & Juettner-Nauroth, B. E. (2005). Expected eps and eps growth as determinantsof value. Review of Accounting Studies, 10, 349–365. https://doi.org/10.1007/s11142-005-1535-3
   Web of Science ®Google Scholar
• Paulus, N. M., Koelbl, M., & Schaefers, W. (2022). Can textual analysis solve the underpricing puzzle? A us reit study. Journal of Property Investment & Finance, 40(6), 548–570 https://doi.org/10.1108/JPIF-06-2021-0052
   Web of Science ®Google Scholar
• Peterson, K., Schmardebeck, R., & Wilks, T. J. (2015). The earnings quality and information processing effects of accounting consistency. The Accounting Review, 90, 2483–2514. https://doi.org/10.2308/accr-51048
   Web of Science ®Google Scholar
• Rainer, A., Lane, P. C. R., Malcolm, J. A., & Scholz, S.-B. (2008). Using n-grams to rapidly characterise the evolution of software code. 43–52.
   Google Scholar
• Rich, K. T., Roberts, B. L., Wall, J. M., & Zhang, J. X. (2021). Toward an understanding of year-over-year changes in municipal management discussion and analysis disclosures. Advances in Accounting, 54, 100548. https://doi.org/10.1016/j.adiac.2021.100548
   Web of Science ®Google Scholar
• Sheng, H. (2022). Option measures and stock characteristics. Finance Research Letters, 44, 102058. https://doi.org/10.1016/j.frl.2021.102058
   Web of Science ®Google Scholar
• Ye, H., Liu, Y., & Schutze, H. (2023). A study of conceptual language similarity: Comparison and evaluation. arXiv. https://doi.org/10.48550/arXiv.2305.13401
   PubMedGoogle Scholar