| The Impact of Corporate Real Estate Unit
Formation on the Parent Firm's Value Authors: Ronald C. Rutherford and Hugh O. Nourse
Start Page: 73
End Page: 84
Volume: 3
Issue Number: 3
Year: 1988
Publication: Journal of Real Estate Research
Abstract: This research
investigates the valuation impact of the formation of a Corporate Real Estate Unit (CREU)
on the stock price of the parent organization. Using standard event study methodology, the
empirical tests show that the formation of a CREU, in general, is associated with positive
gains to shareholders. The largest gains are associated with the publicly traded
subsidiaries. The next largest gains are associated with the Master Limited Partnerships
and the wholly owned subsidiaries.
 |
