Corporate Restructuring Involving Real Estate Assets: Some Earnings and Risk Signal Implications
AbstractChanges in common stockholder wealth when companies announce purchases and sales of real estate assets may result from changing investor perceptions about the risk, timing and/or amount of future cash flows. The evidence suggests that neither sellers nor buyers experience changes in firm risk for these transactions. However, sellers experience positive cash flow changes in the announcement year while buyers experience positive cash flow changes in the following year. Finally, for one-time purchasers, our study provides evidence that the lower the earnings performance compared with expectations in the announcement year, the greater the prediction errors.
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Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 8 (1993)
Issue (Month): 4 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
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- Dann, Larry Y. & Masulis, Ronald W. & Mayers, David, 1991. "Repurchase tender offers and earnings information," Journal of Accounting and Economics, Elsevier, vol. 14(3), pages 217-251, September.
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