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Corporate Real Estate and Corporate Takeovers: International Evidence

Author

Listed:
  • Dirk Brounen

    (RSM Erasmus University 3000 DR Rotterdam,The Netherlands)

  • Mathijs van Dijk

    (RSM Erasmus University 3000 DR Rotterdam,The Netherlands)

  • Piet M.A. Eichholtz

    (Maastricht University P.O. Box 616, NL-6200 MD Maastricht, The Netherlands)

Abstract

We investigate whether corporate real estate ownership is a trigger for takeovers. The empirical analysis is based on a sample covering 225 takeovers in France, Germany, the Netherlands, and the United Kingdom between 1992 and 2003. Using a multivariate probit model in which we control for various financial firm characteristics we find that the role of corporate real estate in takeovers depends on the nature of the takeover, the industry, the period, and the country. The presence of corporate real estate is a significantly positive predictor for takeovers within the same industry. Companies that have been taken over appear to have been reducing their real estate holdings prior to the takeover, which would suggest a financial distress situation.

Suggested Citation

  • Dirk Brounen & Mathijs van Dijk & Piet M.A. Eichholtz, 2008. "Corporate Real Estate and Corporate Takeovers: International Evidence," Journal of Real Estate Research, American Real Estate Society, vol. 30(3), pages 293-314.
    • Handle: RePEc:jre:issued:v:30:n:3:2008:p:293-314
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    References listed on IDEAS

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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