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| The Wealth Effects of Corporate Real
Estate Leasing Author: Marcus T. Allen, Ronald C. Rutherford, and Thomas M. Springer Start Page: 567 Abstract: This paper resents an
event-time study of the wealth effects associated with the corporate decision to lease
real estate assets. The analysis provides a measure of the valuation consequences of real
estate lease transactions for corporate lessees to determine whether such transactions
offer a net benefit to lessees in terms of a common stock price change. Examining a sample
of sixty-seven corporate lease announcements reveals that positive abnormal returns accrue
to the lessee firm and suggests that, on average, real estate leasing decisions benefit
the corporate stockholders. We interpret these findings as consistent with the hypothesis
that managers, in making real estate lease decisions, seek to maximize firm value. |
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