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An event analysis of industrial timberland sales on shareholder values of major U.S. forest products firms

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  • Sun, Xing
  • Zhang, Daowei

Abstract

We used an event study to investigate the impact of industrial timberland sales from 1997 to 2007 on shareholder values of major U.S. forest products firms. Cross-sectional regression analysis and Capital Asset Pricing Model were used to examine factors influencing changes in market capitalization and systematic risk before and afterward. The average cumulative abnormal rates of returns associated with the timberland sales were found to be positive for all firms, and the resulting change in capitalization was related to these firms' total asset and debt. The systematic risk for these firms changed little or increased slightly after the timberland sales.

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  • Sun, Xing & Zhang, Daowei, 2011. "An event analysis of industrial timberland sales on shareholder values of major U.S. forest products firms," Forest Policy and Economics, Elsevier, vol. 13(5), pages 396-401, June.
    • Handle: RePEc:eee:forpol:v:13:y:2011:i:5:p:396-401
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    References listed on IDEAS

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    Cited by:

    1. Daowei Zhang & Xing Sun & Brett J. Butler & Jeffrey P. Prestemon, 2015. "Harvesting Choices and Timber Supply among Landowners in the Southern United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 409-429, September.
    2. Piao, Xiaorui & Mei, Bin & Zhang, Weiyi, 2017. "Long-term event study of timber real estate investment trust conversions," Forest Policy and Economics, Elsevier, vol. 78(C), pages 1-9.
    3. Tingting Zhang & Shunbo Yao & Jinna Yu & Assem Abu Hatab & Zhen Liu, 2020. "Effects of China’s Collective Forestland Tenure Reform Policies on Forest Product Firm Values," Land, MDPI, vol. 9(4), pages 1-20, April.
    4. Sun, Changyou & Rahman, Mohammad M. & Munn, Ian A., 2013. "Adjustment of stock prices and volatility to changes in industrial timberland ownership," Forest Policy and Economics, Elsevier, vol. 26(C), pages 91-101.
    5. Sun, Changyou, 2013. "Price variation and volume dynamics of securitized timberlands," Forest Policy and Economics, Elsevier, vol. 27(C), pages 44-53.
    6. Ståle Størdal & Gudbrand Lien & Erik Trømborg, 2021. "Impacts of Infectious Disease Outbreaks on Firm Performance and Risk: The Forest Industries during the COVID-19 Pandemic," JRFM, MDPI, vol. 14(7), pages 1-13, July.

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