The Wealth Effects of Real Estate Spin-Offs

Jay N. Ball, Ronald C. Rutherford and Ron J. Shaw
Additional contact information
Jay N. Ball: 413 Haydon Hall Northeastern University Boston, Massachusetts 02115 Wichita, Kansas 67260-0088, http://www.neu.edu/
Ronald C. Rutherford: Department of Finance and Real Estate University of Texas at Arlington Arlington, Texas 76019-0449, http://www2.uta.edu/finance/
Ron J. Shaw: Department of Finance and Real Estate University of Texas at Arlington Arlington, Texas 76019-0449, http://www2.uta.edu/finance/

Journal of Real Estate Research, 1993, vol. 8, issue 4, 597-606

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.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (8)

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