Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/223178
Title: DIFFERENCE BETWEEN REIT MERGER & ACQUISITIONS AND GENERAL CORPORATIONS: AN EMPIRICAL STUDY ON STAKEHOLDER VALUE
Authors: LIN KEN YIN
Keywords: Real Estate
Ong Seow Eng
2019/2020 RE
RE
Real estate investment trusts
Merger and acquisitions
Payment method
Issue Date: 28-May-2020
Citation: LIN KEN YIN (2020-05-28). DIFFERENCE BETWEEN REIT MERGER & ACQUISITIONS AND GENERAL CORPORATIONS: AN EMPIRICAL STUDY ON STAKEHOLDER VALUE. ScholarBank@NUS Repository.
Abstract: This dissertation extends corporate finance and real estate literature related to Mergers and Acquisitions by examining 47 REITs in the Australian Real Estate Investment Trust (A-REIT) market from 2000 to 2019 and 42 Corporate in the Australian Stock Exchange (ASX) market in the same period. While some researchers found that smaller targets are more likely to be acquired due to reduced transaction cost, this study shows that in horizontal mergers and acquisitions, REIT acquirers typically prefer to consider larger sized targets and undervalued firms in a period of merger waves, high economic growth and low cost of capital. The findings are consistent with the control group of corporates takeovers. The second part of this dissertation examines the wealth effects to acquirers following an acquisition announcement financed with 2 different payment method – cash or mixed and established that cash financed takeovers will lead to positive abnormal returns. This study advances the study of differences between REITs and Corporates in a domestic takeover market thereby opening new possibilities for future researches, regulation improvement and management decision.
URI: https://scholarbank.nus.edu.sg/handle/10635/223178
Appears in Collections:Bachelor's Theses

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