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The Global Financial Crisis and the Centro Properties Group Earnings Revision and Refinancing Announcements: An Event Study

Author/s: William Dimovski

Date Published: 1/01/2009

Published in: Volume 15 - 2009 Issue 4 (pages 417 - 429)

Abstract

This study analyses the impact of the global financial crisis using Centro Properties Group’s earnings revision and refinancing announcements on December 17 2007 as the event date to investigate the change in risk profile for A-REITs that were included in the S&P/ASX 300. The study finds that nine of the 25 A-REIT constituents on the S&P/ASX 300 recorded statistically significant negative abnormal returns on 17 December 2007 and that the systematic risk for many A-REITs moved significantly higher after this date. This increased systematic risk has major implications for the cost of capital to the sector.

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Keywords

A-Reits - Capm - Global Financial Crisis

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