The Effect of Poison Pill Securities on REIT Stock Prices

  • April 4, 1991
  • • Written by: Willard McIntosh

Spring/Summer 1991, Vol 16, No 1

Abstract: Empirical evidence concerning the effect of poison pill takeover defense on real estate investment trust (REIT) shareholder wealth indicates that announcement of the adoption of a poison pill strategy is associated with a significant decline in stock price. The percentage of this stock price decline appears to be similar to the percentage of decline in stock price experienced by standard corporations that adopt poison pills.