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The Wealth Effects of Real Estate Spin-Offs

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Abstract

This study examines the wealth effects surrounding the separation of real estate operations via spin-off. Parent firms of spin-offs in this sample experienced a significant abnormal two-day return of 3.195% for days - 1 and 0 of the announcement data in the Wall Street Journal. Tracking the performance of the spun off firms and the parent firms that survived for twenty-four months after the spin-off showed that neither the portfolio of subsidiaries nor the portfolio of parent firms earned returns significantly different from the market portfolio.

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  • Jay N. Ball & Ronald C. Rutherford & Ron J. Shaw, 1993. "The Wealth Effects of Real Estate Spin-Offs," Journal of Real Estate Research, American Real Estate Society, vol. 8(4), pages 597-606.
    • Handle: RePEc:jre:issued:v:8:n:4:1993:p:597-606
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    5. William B. Brueggeman & Jeffrey D. Fisher & David M. Porter, 1990. "Rethinking Corporate Real Estate," Journal of Applied Corporate Finance, Morgan Stanley, vol. 3(1), pages 39-50, March.
    6. John L. Glascock & Wallace N. Davidson & C. F. Sirmans, 1991. "The Gains from Corporate Selloffs: The Case of Real Estate Assets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(4), pages 567-582, December.
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    Cited by:

    1. Chris Manning & Stephen E. Roulac, 2001. "Lessons from the Past and Future Directions for Corporate Real Estate Research," Journal of Real Estate Research, American Real Estate Society, vol. 22(1/2), pages 7-58.
    2. Masatomo Suzuki & Seow Eng Ong & Yasushi Asami & Chihiro Shimizu, 2023. "Long-Run Renewal of REIT Property Portfolio Through Strategic Divestment," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 1-40, January.
    3. Christopher Heywood & Monique Arkesteijn, 2017. "Meta-Corporate Real Estate Management: Some preliminary thoughts," ERES eres2017_180, European Real Estate Society (ERES).
    4. John B. Corgel, 1997. "Property-by-Property Valuation of Publicly Traded Real Estate Firms," Journal of Real Estate Research, American Real Estate Society, vol. 14(1), pages 77-90.
    5. Christopher A. Manning & Mauricio Rodriguez & Stephen E. Roulac, 1997. "Which Corporate Real Estate Management Functions Should be Outsourced?," Journal of Real Estate Research, American Real Estate Society, vol. 14(3), pages 259-274.
    6. Chris Manning & Stephen E. Roulac, 1999. "Corporate Real Estate Research within the Academy," Journal of Real Estate Research, American Real Estate Society, vol. 17(3), pages 265-280.
    7. Andreas Pfnür, 2000. "Institutionalisierung des betrieblichen Immobilienmanagements," Schmalenbach Journal of Business Research, Springer, vol. 52(6), pages 571-591, September.
    8. Nazir Saima & Chisti Khalid, 2023. "Corporate Spin-Offs and Shareholders’ Wealth: A Systematic Review and Future Research Agenda," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 11(1), pages 42-63, October.

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    JEL classification:

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

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