Financial statements prepared by companies are the main sources of information for those who make economic decisions about the companies. As the listed companies in many countries (at least on the large European stock market) have one or more subsidiaries, they are obligated by regulations to prepare dual financial statements (individual and consolidated). Unlike the practices in developed European stock exchanges, companies listed on the stock exchange in Turkey, which used to prepare individual financial statements until 2005, have been preparing only consolidated financial statements in accordance with national accounting and financial reporting standards which were adopted from International standards since then. As of today, individual financial statements have not been prepared by Turkish companies. Only exception to this general practices are the Real Estate Investment Trusts (REITs) registered with Capital Market Board (CMB). As the discussions and results of some empirical studies in the literature indicate that impact of consolidated and individual financial statements on the performances of companies are different. In line with these arguments in literature, this study, focusing on the REITs registered with CMB in Turkey, attempts to investigate the impact of consolidated financial statements on performance of financial institutions (REITs). In this context, value relevance is used as a proxy to measure the performance. Than the impact of indicators as regards to profit and owners’ equity observed from two different sets of financial statements of the same Real Estate Investment Trusts on the value relevance of companies are analyzed.
From Property Companies to Real Estate Investment Trusts: The Impact of Economic and Property Factors in the UK Commercial Property Returns
