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dc.contributorDepartment of Building and Real Estateen_US
dc.creatorShen, Jen_US
dc.creatorHui, ECMen_US
dc.creatorFan, Ken_US
dc.subjectInsider tradingen_US
dc.subjectReal estate bubbleen_US
dc.subjectInformed traderen_US
dc.subjectBiased beliefen_US
dc.titleDid real estate professionals anticipate the 2007-2008 financial crisis? Evidence from insider trading in the REITsen_US
dc.typeJournal/Magazine Articleen_US
dcterms.abstractThis research examines whether real estate professionals detected the property bubble and foresaw the consequent financial crisis of 2007-2008. By analysing the insider trading activities within REITs from 1996 to 2010, we find that REIT insiders reduced their holdings significantly during the real estate boom period as early as 2004, before the financial crisis. Difference-in-difference analysis reveals that REIT insiders cashed out their positions more aggressively than insiders in real estate and construction firms. The findings support the informed trader hypothesis that managers and employees in REITs anticipated the burst of the real estate bubble and the imminent financial crisis, and shifted their wealth away from the real estate market to avoid potential losses. We find no evidence to support the biased belief hypothesis (Cheng et al., 2014) that REIT insiders were over-optimistic during the real estate boom period or that their inside trading behaviour was affected by local market performance.en_US
dcterms.bibliographicCitationJournal of real estate finance and economics, 2020, p. 1-21,
dcterms.isPartOfJournal of real estate finance and economicsen_US
dc.description.validate202005 bcrcen_US
dc.description.oaNot applicableen_US
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