Purpose – To examine the stock price reactions to the announcements of corporate real estate disposals by listed non‐property companies in Malaysia and whether disposals under different economic conditions lead to different price reactions. Design/methodology/approach – This research applies the event study approach. Findings – It is found that the cumulative abnormal returns associated with the property disposals differ significantly in different economic conditions. Price reaction for property disposals before the Asian financial crisis is consistent with the normal investor expectations of increasing shareholder value. However, property disposals during and after the crisis have negative wealth effects. Research limitations/implications – The research is limited in that it has considered only the Asia financial crisis. Further research might explore the impact of other forms of economic conditions on wealth effects of corporate real estate disposals. Practical implications – The research clearly identified the need to consider economic condition as a factor affecting wealth effects of property disposals. The findings of this study are useful to decision makers of multinational companies which have significant corporate real estate investments in China, India and developing countries. Originality/value – The paper argues that the wealth effect of corporate real estate disposals is affected by economic condition.
Journal of Corporate Real Estate – Emerald Publishing
Published: Jan 1, 2006
Keywords: Real estate; Transaction costs; Asia; Financial risk
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera