Corporate Real Estate Holding and Corporate Governance: An Empirical Study

Project: Research

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Description

Corporate real estate is often justified by return-improving and financial constraint. Most empirical studies, however, do not confirm the return-improving explanation. This project suggests that corporate real estate is indeed a form of “empire building”. Using a sample of US firms, the investigators will confirm their hypothesis that a higher degree of financial constraint and weaker corporate governance are associated with higher real estate holdings. The corporate governance effect seems to be stronger in manufacturing-related industries. Implications and future research directions will be explored.The ultimate goal of the project is to derive corporate governance measures in the area of real estate holding by calculating “normal corporate real estate ownership” for different industries. This can then be applied to different firms and “deviations” from the norm can be detected.

Detail(s)

Project number7002151
Grant typeSRG
StatusFinished
Effective start/end date1/04/078/10/09