How different retail strategies affect shareholder value

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ACKNOWLEDGEMENTS

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

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DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTSii

DECLARATIONiii

CHAPTER 2: LITERATURE REVIEW (Outline)1

Introduction1

Shareholder Wealth1

Sale and Leaseback2

Current picture2

Renting or Owning Real Estate3

Retail Strategy4

Modern real estate system5

Real estate and recession6

Division of cash flow and retail strategies7

REFERENCES9

CHAPTER 2: LITERATURE REVIEW (Outline)

Introduction

In many of these companies target, real estate comprises a substantial portion of total assets are recorded at historical cost balance sheet. In other words, these companies become acquisition targets by holding real estate assets that are not efficiently put to its highest and best use. Acquisitions can be seen as a mechanism by which the real estate market changes less efficient to more efficient uses (Shwartz 2007, 1396).

The importance of real estate retail strategy in the combined total assets of social balance was first studied by Howard Stevenson. He concluded that real estate is a critical area of corporate investment. However, is often an undermanaged activity? In the early 1980s, many companies are aware of the importance of real estate assets, decided to actively manage their real estate (Shleifer 2009, 737). Some have done so by creating a separate unit of real estate companies in the corporate structure by restructuring a unit of power or by creating a separate unit of real property outside the corporate structure (Shleifer 2008, 1343).

Shareholder Wealth

Rutherford and Nourse, examined the impact of the formation of a corporate real estate unit in the market value of the company. The study investigated the economic impact of restructuring activities regardless of the specific type of divestiture, but with respect to the organizational form of holding real estate. In general it was found that the formation of a real estate unit produces abnormal excess returns for most companies (Leonhardt 2008, 2).

Sale and Leaseback

The sale-leaseback (SLB) was first introduced by Safeway Stores in 1936. Safeway used the technique for individual supermarkets and included a repurchase agreement. Since then, various financial institutions and corporations have sold and leased back their headquarters and other buildings or land to raise working capital, pay off debts, and to take advantage of the increased value of depreciated property (Kouparitsas 2006, 60).

Smith, C.F. have investigated the effect of corporate debt offerings and found that firms generally experience negative excess returns ...