Corporate Real Estate and Corporate Takeovers: International Evidence
Erasmus University Rotterdam (EUR) - Department of Financial Management; Erasmus Research Institute of Management (ERIM); Tinbergen Institute
Piet M. A. Eichholtz
University of Maastricht - Limburg Institute of Financial Economics (LIFE)
Mathijs A. Van Dijk
Erasmus University - Rotterdam School of Management; Erasmus Research Institute of Management (ERIM)
Journal of Real Estate Research (JRER), Vol. 30, No. 3, 2008
This study investigates 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 that controls 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.
Number of Pages in PDF File: 22
Keywords: corporate real estate, firm characteristicsAccepted Paper Series
Date posted: January 22, 2008 ; Last revised: July 17, 2009
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