Why Do Real Estate Master Limited Partnerships Seem to be Undervalued?
This study investigates one reason why real estate master limited partnerships (MLPs) are undervalued. The study finds that parents of MLPs, generally, and parents of non-real estate MLPs experience positive stock price increases when creating MLPs in the same business as the parent firm and insignificant price increases otherwise. Parents of real estate MLPs experience insignificant stock price changes whether or not the MLP is in the same business as the parent firm. However, despite insignificance, we find evidence that real estate parents forming real estate MLPs may experience greater stock price appreciation than non-real estate parents creating real estate MLPs.
Volume (Year): 8 (1993)
Issue (Month): 1 ()
|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/
|Order Information:|| Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323|
Web: http://pages.jh.edu/jrer/about/get.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Corrado, Charles J., 1989. "A nonparametric test for abnormal security-price performance in event studies," Journal of Financial Economics, Elsevier, vol. 23(2), pages 385-395, August.
- Ronald C. Rutherford & Hugh O. Nourse, 1988. "The Impact of Corporate Real Estate Unit Formation on the Parent Firm's Value," Journal of Real Estate Research, American Real Estate Society, vol. 3(3), pages 73-84.
- Moore, William T. & Christensen, Donald G. & Roenfeldt, Rodney L., 1989. "Equity valuation effects of forming master limited partnerships," Journal of Financial Economics, Elsevier, vol. 24(1), pages 107-124, September.
- Gailen L. Hite & James E. Owers & Ronald C. Rogers, 1984. "The Separation of Real Estate Operations By Spin-Off," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 12(3), pages 318-332.
- Sicherman, Neil W & Pettway, Richard H, 1987. " Acquisition of Divested Assets and Shareholders' Wealth," Journal of Finance, American Finance Association, vol. 42(5), pages 1261-73, December.
When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:8:n:1:1993:p:1-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster)
If references are entirely missing, you can add them using this form.