Property market liquidity and REIT liquidity

This study examines the asset–stock liquidity relationship for firms with location-specific assets. Using a sample of real estate investment trusts (REITs), we extend concept asset to include information based on local property market turnover. Our findings confirm that holding more cash increases REIT stock liquidity. More importantly, find positive relation between and is stronger REITs lower growth opportunities, less advantage, greater financial constraints. also provide evidence managers can actively influence through structure.