Takeovers and the market for corporate control in Japanese reits

Ma, G; Michayluk, D

Takeovers and the market for corporate control in Japanese reits

Ma, G Michayluk, D

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Publication Type:: Journal Article
Citation:: Journal of Real Estate Literature, 2015, 23 (1), pp. 115 - 137
Issue Date:: 2015-01-01

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Field	Value	Language
dc.contributor.author	Ma, G	en_US
dc.contributor.author	Michayluk, D https://orcid.org/0000-0001-9020-0855	en_US
dc.date.issued	2015-01-01	en_US
dc.identifier.citation	Journal of Real Estate Literature, 2015, 23 (1), pp. 115 - 137	en_US
dc.identifier.issn	0927-7544	en_US
dc.identifier.uri	http://hdl.handle.net/10453/39028
dc.description.abstract	Japanese real estate investment trusts (J-REITs) were established in 2001. They have rapidly grown in number and size and there have been many J-REIT mergers following the Global Financial Crisis (GFC). J-REITs typically have a common ownership that renders most takeovers friendly, therefore the motivation for mergers is likely related to financial hardship. We examine the market response and the post- merger performance of these J-REIT mergers. We find significant abnormal trading volume for both surviving and absorbed J-REITs in the immediate days before the merger. Absorbed J-REITs suffer a significantly negative return in the two days before the merger announcement and there is no observed improvement in the post-merger operating performance. Unlike other mergers in Japan, the merger premium for J-REITs is inversely predictive of post-merger performance.	en_US
dc.relation.ispartof	Journal of Real Estate Literature	en_US
dc.subject.classification	Finance	en_US
dc.title	Takeovers and the market for corporate control in Japanese reits	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	23	en_US
utslib.for	1599 Other Commerce, Management, Tourism and Services	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1504 Commercial Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Finance Discipline
pubs.organisational-group	/University of Technology Sydney/Students
utslib.copyright.status	closed_access
pubs.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	23	en_US

Abstract:

Japanese real estate investment trusts (J-REITs) were established in 2001. They have rapidly grown in number and size and there have been many J-REIT mergers following the Global Financial Crisis (GFC). J-REITs typically have a common ownership that renders most takeovers friendly, therefore the motivation for mergers is likely related to financial hardship. We examine the market response and the post- merger performance of these J-REIT mergers. We find significant abnormal trading volume for both surviving and absorbed J-REITs in the immediate days before the merger. Absorbed J-REITs suffer a significantly negative return in the two days before the merger announcement and there is no observed improvement in the post-merger operating performance. Unlike other mergers in Japan, the merger premium for J-REITs is inversely predictive of post-merger performance.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/39028