A-REIT bidder returns : an evaluation of public and private targets and method of payment Ratcliffe, Chris and Dimovski, Bill 2012, A-REIT bidder returns : an evaluation of public and private targets and method of payment, Pacific rim property research journal, vol. 18, no. 4, pp. 355-369. Attached Files Name Description MIMEType Size Downloads ratcliffe-areitbidderreturns-2012.pdf Published version application/pdf 2.67MB 222 Title A-REIT bidder returns : an evaluation of public and private targets and method of payment Author(s) Ratcliffe, Chris orcid.org/0000-0003-3687-7720 Dimovski, Bill orcid.org/0000-0002-0038-8848 Journal name Pacific rim property research journal Volume number 18 Issue number 4 Start page 355 End page 369 Total pages 15 Publisher Pacific Rim Real Estate Society Place of publication Sydney, N. S. W. Publication date 2012-12 ISSN 1444-5921 Keyword(s) real estate investment trusts (reits) A-REITS mergers acquisitions cumulative abnormal returns Summary This study examines the wealth effects of fifty-six Australian Real Estate Investment Trusts (A-REITS) acquirers around the announcement date of a merger and acquisition over the period of 1996 to 2010. This study extends Ratcliffe et al (2009) by examining mergers and acquisitions of private entity targets as well as public targets and confirms recent US REIT work in this field. Utilising event study methodology we find that bidding A-REITs earn positive and significant cumulative abnormal returns (CARs) of +0.966% around the three-day announcement period [-1, +1]. Analysis also indicates bidding firms earn higher CARs when the acquisition is financed by scrip and/or a combination of scrip and cash. Consistent with prior REIT research, event study results show that A-REIT acquirers earn higher excess returns when the target is private as compared to a public target, +2.834% and +0.457% respectively. Further investigation, employing regression analysis, shows book-to-market ratio has a negative impact on bidding firms CARs, suggesting that investors penalise high book-to-market A-REITs in an M&A due to their higher risk characteristics. We also find that both specialisation by property type and relative size of the bidder compared to the target has a positive and significant influence on bidder excess returns. Finally, our results show support for the method of payment findings in the event study, with method of payment returning a negative and significant impact on the bidder CARs. Notes Reproduced with the kind permission of the copyright owner. Language eng Field of Research 150299 Banking, Finance and Investment not elsewhere classified Socio Economic Objective 900199 Financial Services not elsewhere classified HERDC Research category C1 Refereed article in a scholarly journal Copyright notice ©2012, The Authors Free to Read? Yes Persistent URL http://hdl.handle.net/10536/DRO/DU:30050704 Document type: Journal Article Collections: Faculty of Business and Law School of Accounting, Economics and Finance Open Access Collection   Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au. Versions Version Filter Type Tue, 19 Feb 2013, 13:58:42 EST Tue, 26 Feb 2013, 10:38:52 EST Tue, 26 Feb 2013, 10:43:19 EST Tue, 26 Feb 2013, 10:45:08 EST Tue, 05 Mar 2013, 08:07:23 EST Mon, 19 Jan 2015, 11:53:02 EST Tue, 03 Feb 2015, 13:22:43 EST Mon, 29 Jun 2015, 14:48:06 EST Tue, 06 Sep 2016, 20:33:46 EST Tue, 05 Dec 2017, 12:39:03 EST Fri, 07 Sep 2018, 16:23:41 EST Filtered Full Citation counts:   Cited 4 times in TR Web of Science Cited 4 times in Scopus Search Google Scholar Access Statistics: 670 Abstract Views, 224 File Downloads  -  Detailed Statistics Created: Tue, 19 Feb 2013, 13:58:29 EST by Aysun Alpyurek