Journal article
Resource Combination and Security Price Reactions: The Case of Real Estate Joint Ventures
Real estate economics, Vol.16(2), pp.105-122
Date Received: May 12, 1987; Revised: June 11, 1987.
06/1988
DOI: 10.1111/1540-6229.00449
Abstract
Joint ventures are a commonplace occurrence in the U.S. economy. In particular, firms undertaking real estate projects frequently use the joint venture as a method of combining resources. This paper examines security price reactions around real estate joint venture announcements. The evidence indicates that significant increases in the values of the participating firms occur within a two‐day announcement period. The changes in values appear to be due principally to the amount of information about the local real estate market possessed by the participating firms, and an information signal about the potential financial viability of the proposed project conveyed by the presence of anchor tenants. While the results are important in their own right, they are also significant in another respect. They seem to confirm the efficiency with which the capital market processes information about the markets for trading real estate claims. Copyright © 1988, Wiley Blackwell. All rights reserved
Details
- Title: Subtitle
- Resource Combination and Security Price Reactions: The Case of Real Estate Joint Ventures
- Creators
- R. Ravichandran - University of Colorado BoulderJ. Sa-Aadu - University of Florida
- Resource Type
- Journal article
- Publication Details
- Real estate economics, Vol.16(2), pp.105-122
- Edition
- Date Received: May 12, 1987; Revised: June 11, 1987.
- Publisher
- Blackwell Publishing Ltd
- DOI
- 10.1111/1540-6229.00449
- ISSN
- 1080-8620
- eISSN
- 1540-6229
- Number of pages
- 18
- Language
- English
- Date published
- 06/1988
- Academic Unit
- Finance
- Record Identifier
- 9984380542802771
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