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The Gains from Corporate Selloffs: The Case of Real Estate Assets

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Author Info
John L. Glascock
Wallace N. Davidson
C. F. Sirmans

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Abstract

Recent financial economics literature has hypothesized that variations in market structure influence the distribution of gains from corporate restructuring between buyers and sellers. We test this hypothesis using data on restructuring involving real estate assets by isolating the effects depending on multiple versus single bidders, acquisition frequency and transaction type. While we find gains for both buyers and sellers, the buyers gain only when they make few purchases. Those firms pursuing an acquisition strategy show no gains around the specific acquisition announcements. Additionally, both buyers and sellers are more likely to have a positive reaction to the announcement when the transaction is property rather than a division or subsidiary. Copyright American Real Estate and Urban Economics Association.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1540-6229.00568
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Publisher Info
Article provided by American Real Estate and Urban Economics Association in its journal Real Estate Economics.

Volume (Year): 19 (1991)
Issue (Month): 4 ()
Pages: 567-582
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Handle: RePEc:bla:reesec:v:19:y:1991:i:4:p:567-582

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1080-8620

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  1. Dirk Brounen & Piet Eichholtz, 2005. "Corporate Real Estate Ownership Implications: International Performance Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 30(4), pages 429-445, June. [Downloadable!] (restricted)
  2. Jay N. Ball & Ronald C. Rutherford & Ron J. Shaw, 1993. "The Wealth Effects of Real Estate Spin-Offs," Journal of Real Estate Research, American Real Estate Society, vol. 8(4), pages 597-606. [Downloadable!]
  3. Chris Manning & Stephen E. Roulac, 2001. "Lessons from the Past and Future Directions for Corporate Real Estate Research," Journal of Real Estate Research, American Real Estate Society, vol. 22(1/2), pages 7-58. [Downloadable!]
  4. Edward F. Pierzak, 2001. "Payment Choice in REIT Property Acquisitions," Journal of Real Estate Research, American Real Estate Society, vol. 21(1/2), pages 105-140. [Downloadable!]
  5. Donald G. Christensen & Donald R. Levi, 1993. "Corporate Restructuring Involving Real Estate Assets: Some Earnings and Risk Signal Implications," Journal of Real Estate Research, American Real Estate Society, vol. 8(4), pages 579-596. [Downloadable!]
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