The Wealth Effects of Land Acquisition

Posted: 27 Jan 2004

See all articles by Joseph T. L. Ooi

Joseph T. L. Ooi

National University of Singapore (NUS) - Department of Real Estate

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law

Abstract

We examine the wealth effects of land acquisition using a unique set of public land auction data in Singapore. The results of our event study provide evidence of positive excess returns associated with announcements of successful land acquisition. The evidence also supports the hypothesis that the excess return is related positively to the ability of the successful bidder to create value from the development process. In addition, the magnitude of the excess gains is related positively to the level of uncertainty in a development and inversely to the propensity of the winning bidder engaging in non-wealth maximization activities.

Keywords: land acquisition, wealth effects, real estate development

Suggested Citation

Ooi, Joseph T. L. and Sirmans, C. F., The Wealth Effects of Land Acquisition. Available at SSRN: https://ssrn.com/abstract=489622

Joseph T. L. Ooi (Contact Author)

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law ( email )

Tallahasse, FL 32306
United States
850 644-4076 (Phone)

HOME PAGE: http://www.cob.fsu.edu/rmi

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