JOURNAL OF MANAGEMENT POLICY AND PRACTICE
IPO Spillover Effects in a New and Uncertain Sector: The Case of a Marijuana REIT
Author(s): Ran Lu-Andrews
Citation: Ran Lu-Andrews, (2018)" IPO Spillover Effects in a New and Uncertain Sector: The Case of a Marijuana REIT," Journal of Management Policy and Practice, Vol. 19, Iss. 3, pp. 147-169
Article Type: Research paper
Publisher: North American Business Press
Abstract:
I examine the IPO spillover effects using the case of Innovative Industrial Properties (IIPR). IIPR, as a
new REIT firm that focuses on marijuana real estate facilities, provides a unique opportunity to study
both the contagion effects and competition effects within the REIT industry and the mariju-ana industry. I find that direct competing firms, such as healthcare REITs and marijuana stocks, are affected more by IIPR IPO than indirect competing firms. The results suggest that the negative externalities from IIPR IPO might be due to the high level of uncertainty associated with the mari-juana industry.