Corporate Real Estate and Corporate Takeovers: International Evidence

D Brounen, Mathijs van Dijk, PMA Eichholtz

Research output: Contribution to journalArticleAcademic

5 Citations (Scopus)

Abstract

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, the findings show 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.
Original languageEnglish
Pages (from-to)293-314
Number of pages22
JournalJournal of Real Estate Research
Volume30
Issue number3
Publication statusPublished - 2008

Research programs

  • RSM F&A

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