REIT mergers and acquisitions: a meta‐analysis

Christopher Ratcliffe and Bill Dimovski ()

Journal of Property Investment & Finance, 2012, vol. 30, issue 3, 241-256

Abstract: Purpose - Mergers and acquisitions in the real estate investment trust (REIT) sector have been studied in distinct periods and locations, often leading to findings which are relevant only for the period and/or location investigated. The purpose of this paper is to examine the merger and acquisition studies in aggregate using meta‐analysis so that broader findings of factors influencing the returns by targets and bidders are divulged. Design/methodology/approach - Using a methodology similar to Veld and Veld‐Merkoulova a sample of 15 REIT studies with 35 observations for bidders and 25 observations for targets is analysed. A variety of potential factors influencing the returns for bidders and targets are explored. Findings - Consistent with prior non‐REIT research, the evidence shows targets enjoy positive and significant gains in a merger. There is also evidence that acquirers earn significant wealth when all previous studies are examined in aggregate. Meta‐analysis results show targets experience higher wealth gains by accepting cash financed deals, but share total gains when both parties are REITs. Additionally, acquirers enjoy improved abnormal returns when the target is privately listed and the use of scrip and/or a combination of scrip and cash produces higher wealth gains for bidding REITs. Originality/value - This paper aggregates the merger and acquisition literature of REITs to understand better factors influencing returns made by bidders and targets.

Keywords: Real estate investment trusts; Acquisitions and mergers; Real estate; Trusts; Abnormal returns; Cumulative abnormal returns; Meta‐analysis (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jpifpp:v:30:y:2012:i:3:p:241-256

DOI: 10.1108/14635781211223815

Access Statistics for this article

Journal of Property Investment & Finance is currently edited by Nick French

More articles in Journal of Property Investment & Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().