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The Wealth Effects of Land Acquisition

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Abstract

We examine the wealth effects of land acquisition using on 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.

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Author information

Authors and Affiliations

  1. Department of Real Estate, School of Design and Environment, National University of Singapore, 4 Architecture Drive, Singapore, 117 566

    Joseph T. L. Ooi

  2. University of Connecticut, School of Business, Center for Real Estate, 2100 Hillside Road, Unit 1041RE, Storrs, CT, 0629-2041, U.S.A

    C. F. Sirmans

Authors
  1. Joseph T. L. Ooi
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  2. C. F. Sirmans
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Ooi, J.T.L., Sirmans, C.F. The Wealth Effects of Land Acquisition. The Journal of Real Estate Finance and Economics 29, 277–294 (2004). https://doi.org/10.1023/B:REAL.0000036674.09159.8b

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  • DOI: https://doi.org/10.1023/B:REAL.0000036674.09159.8b

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