The Separation of Real Estate Operations By Spin-Off

Authors: Hite G.L.1; Owers J.E.2; Rogers R.C.3

Source: Real Estate Economics, Volume 12, Number 3, September 1984 , pp. 318-332(15)

Publisher: Blackwell Publishing

Key:
Free Content - Free Content
New Content - New Content
Subscribed Content - Subscribed Content
Free Trial Content - Free Trial Content

Abstract:

In this paper, we consider spin-offs as a vehicle to separate real estate operations from other real estate and/or non-real estate operations. For a sample of 33 such spin-offs announced and completed between 1962 and 1982, we document significantly positive abnormal returns around spin-off announcements. Using the standard event-time methodology, we find average excess returns of 5.7% in the two-day interval surrounding the first Wall Street Journal report of a pending spin-off. While the gains associated with spin-offs by real estate firms are positive on average, they are small in comparison to the 9.1% two-day announcement period abnormal returns surrounding proposals by non-real estate firms to divest real estate operations.

Document Type: Research article

DOI: 10.1111/1540-6229.00325

Affiliations: 1: Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275. 2: School of Business, University of Massachusetts, Amherst, Massachusetts 01003. 3: School of Business, University of Connecticut, Storrs, Connecticut 06268.

The full text article is not available.

Back to top

Key:
Free Content - Free Content
New Content - New Content
Subscribed Content - Subscribed Content
Free Trial Content - Free Trial Content
Share this item with others: These icons link to social bookmarking sites where readers can share and discover new web pages.
Page Help Click here for Page Help
Shopping cart
Tools
Sign in






Need to register?
Sign up here
Text size: A | A | A | A