Evidence of Motives and Market Reactions to Sale and Leasebacks

Wells, Kyle

doi:10.2139/ssrn.1081461

Cited by 7 publications

(6 citation statements)

References 36 publications

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“…(2008) report the positive stock market reactions, by and large, to the SLBs with high transaction value to corporate market value in the European countries. Wells and Whitby (2012) document that the ARson the announcement date are positively associated with the price-earning ratio, which implies that the stock market reacts favorably to the SLB deals for business expansion. They also found a negative association between AR and capital structure, suggesting that SLBs for debt repayment fail to create additional value to shareholders.…”

Section: Literature Reviewmentioning

confidence: 97%

The announcement effect of shipping sale-and-leaseback transactions

Yoon,

Kim

2023

MABR

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PurposeThis paper investigates the announcement effect of shipping sale-and-leaseback (SLB) transactions. As an emerging source of financing, a growing deal of interest has been paid to the SLB. However, little is known about a variety of aspects of SLB transactions in the shipping industry. In this regard, this study examines the stock market reaction to the SLB announcements of shipping firms and their impact on shareholders' wealth.Design/methodology/approachA sample of 15 shipping SLB deals commenced by publicly-listed Korean shipping companies during 2009–2023 are examined in this research. The announcement effect is measured by abnormal returns (AR) of their stocks based on the event study analysis.FindingsIt is found that the AR on the shipping SLB announcement date is, on average, −0.84% while there is no statistical significance. However, the results indicate that shareholders of shipping companies engaging in large-sized SLBs can experience positive AR around the announcement date.Originality/valueThis study is the first attempt to investigate the announcement effect of SLB transactions on the shipping industry and their impact on shareholders' wealth. The findings in this research can offer implications for the financing decisions of shipping companies and investment decisions of stock investors.

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Section: Literature Reviewmentioning

confidence: 97%

The announcement effect of shipping sale-and-leaseback transactions

Yoon,

Kim

2023

MABR

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“…The sale and leaseback investment arrangement is a recent innovation in many financial markets, especially for operating companies. According to Wells, Kyle &Whitby (2012), andHunsaker (2012), the main motive of a sale and leaseback arrangement is likely as a method used by an operating company to fund growth, as opposed to covering debt obligations. A sale and leaseback arrangement is also known as a unique financing technique used in real estate market transactions (Ling, 2012), raising money by selling the asset while continuing to use the asset by leasing it back from the buyer.…”

Section: Sale and Leasebackmentioning

confidence: 99%

Malaysia REIT Companies Concepts in Practicing Sale and Leaseback Investment

Ling

Aliasak

Alauddin

2020

jABs

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Sale and leaseback investment has been a growing trend among the Real Estate Investment Trust (REIT) Companies in Malaysia. This study is to determine the important elements in the concepts of the sale and leaseback transactions practiced by the REIT companies. The study uses the NVIVO software to analyze the data interviews with the REIT managers that adopt sale and leaseback investment transactions. With a response rate of 78%, results show there are three main elements namely location, type of lease, and rental. This study forms a useful guide to real estate managers in developing countries towards using the sale and leaseback as one of the alternative methods in property investment.Keywords: sale and leaseback; property investment; REITeISSN: 2514-7528 © 2020 The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.DOI: https://doi.org/10.21834/jabs.v5i15.343

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“…The sale and leaseback investment arrangement is a recent innovation in many financial markets, especially for operation companies. According to Wells, Kyle &Whitby (2012), andHunsaker (2012), the main motive of a sale and leaseback arrangement is likely as a method used by an operating company to fund growth, as opposed to covering debt obligations. A sale and leaseback arrangement is also known as a unique financing technique used in real estate market transactions (Ling, 2012), raising money by selling the asset while continuing to use the asset by leasing it back from the buyer.…”

Section: Literature Reviewmentioning

confidence: 99%

Sale and Leaseback Investment Concepts in Malaysian REIT Companies

Ling

Aliasak

Alauddin

2019

E-BPJ

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Sale and leaseback investment has been a growing trend among the Real Estate Investment Trust (REIT) Companies in Malaysia. This study is to determine the important elements in the concepts of the sale and leaseback transactions practiced by the REIT companies. The study uses the NVIVO software to analyze the data interviews with the REIT managers that adopt sale and leaseback investment transactions. With a response rate of 78%, results show there are three main elements namely location, type of lease, and rental. This study forms a useful guide to real estate managers in developing countries towards using the sale and leaseback as one of the alternative methods in property investment.Keywords: sale and leaseback; property investment; REITeISSN: 2398-4287 © 2019. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.DOI: https://doi.org/10.21834/e-bpj.v4i12.1942

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Evidence of Motives and Market Reactions to Sale and Leasebacks

Cited by 7 publications

References 36 publications

The announcement effect of shipping sale-and-leaseback transactions

The announcement effect of shipping sale-and-leaseback transactions

Malaysia REIT Companies Concepts in Practicing Sale and Leaseback Investment

Sale and Leaseback Investment Concepts in Malaysian REIT Companies

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