Long-Term post-merger announcement performance. A case study of Australian listed real estate

This study examines the long-term postmerger performance of Australian Real Estate Investment Trusts (A-REITs). The A-REIT sector is used as a case study being less vulnerable to agency issues due to its regulatory structure (Eichholtz and Kok, 2008; Ratcliffe et al., 2009). Research on conventional firms has shown, on average, shareholders are worse off in the long run (Alexandridis et al., 2012). In contrast, we find that shareholders experience significantly positive abnormal returns, after accounting for the financial crisis. This outcome suggests that when managers are restricted with the use of retained earnings and the type of investment, they may be less susceptible to hubris and/or agency issues.

Australian real estate management and development companies and women directors

Purpose – There is a large literature advocating the importance of a greater proportion of women directors on boards of publicly listed firms. The purpose of this paper is to examine the numbers and proportions of women directors, including women executive directors, on listed Australian Real Estate Management and Development (REMD) companies to identify how prevalent women directors are on such boards.
Design/methodology/approach – The study examines the numbers and proportions of women directors for 35 REMDs in 2011 and compares this to the broad board composition data on 1,715 Australian Stock Exchange listed entities. Statistically significant findings are evident due to the identified low proportions.
Findings – The study finds that of all the Financials Sub Industry sector groups, REMDs have the lowest proportion of female directors on theirs boards – eight women on each of 35 company boards compared to 159 men on these 35 boards at 2011. Of the eight, there were only two women executive directors on boards compared to 50 men. Statistically, it appears that having women directors on REMD boards is not considered important. Even at December 2014, there are only ten women on seven company boards and only one remaining executive director of an REMD company.
Practical implications – Given that female board representation is positively related to accounting returns and that there is a growing voice for legislation to impose mandatory proportions of women directors on boards around the world, it may be in the interests of REMD boards to consider appointing more women more quickly.
Originality/value – The study is the first to examine the numbers and proportions of women directors amongst REMD companies to identify the paucity of such women directors.

Attachment as a predictor of leadership and follower outcomes

Research has suggested that effective leadership, specifically the utilisation of transformational leadership behaviours, is heavily entrenched in a leader’s interpersonal skills. However, few studies have investigated the interpersonal factors that drive appropriate use of transformational and transactional leadership in leader-follower settings. Attachment theory provides a robust framework in which to chart the developmental precursors of effective leadership that underpin positive leader-follower relationships and potential organisational outcomes. In this study, 46 manager-non manager dyads recruited from a Victorian education institution, a national telecommunications company and a Victorian real-estate business (managers – Mean age = 48.5 years, SD = 7.78, non-managers – Mean age 43.92 years, SD = 8.72) took part in an online questionnaire. Participants completed measures of attachment, leadership behaviour and organisational citizenship behaviour. Path analysis revealed that manager’s attachment style significantly predicted follower ratings of transformational and transactional leadership behaviours. Additionally, follower ratings of leadership were associated with organisational citizenship behaviour. Thus, it is concluded that attachment theory provides a valid framework in which to understand follower perceptions of leadership behaviour and subsequent organisational outcomes. These findings are discussed within the context of attachment theory and the leadership literature.

How E-business can provide a sustainable framework for online learning in the vocational education and training arena

The author undertook a major national study of e-business for the Australian National Training Authority (ANTA) from November 1999 - February 2000, resulting in the report E-competent Australia: The Impact of E-commerce on the National Training Framework (ANTA, 2000; available at http;://www.anta.gov.au). This ANTA study and other research by the author show that e-business will eventually have a significant impact on the Australian economy, on industries, organisations, occupations and education and training organisations. From April-May 2000, the author is undertaking a major study for the Commonwealth Government (DETYA): a scoping study of e-commerce in the education and training sector (higher education, VET, schools) of Australia.

This paper starts where the ANTA study (Mitchell 2000a) and the DETYA study stop, by exploring the implications of e-business for online learning systems. E-business will eventually impact not only on the organisations providing online education but on their online learning systems.

The paper is based also on research by the author for a Doctorate in Education within the Faculty of Education at Deakin University that commenced in 1997 and is continuing. The research for this paper involved a review of national and international developments in ebusiness, relating them to online learning systems.

This paper traces the origins, definitions and drivers of both e-business and online learning systems in the 1990s, showing how e-business principles and strategies in the future will have a beneficial impact on online learning systems, even if online learning systems eventually lose their identities as separate from the rest of the organisation.

An e-business focus for online learning systems would start with an understanding of the customers' needs; would find a customer-centric solution, not a technology-centric solution; would empower the customer; would provide sufficient and multiple types of support for the customer; would provide quality and skilled input; and would provide cost effective, reliable and accessible technology.

This vision of an e-business approach to training varies greatly from the traditional business model for the delivery of training, particularly by VET Registered Training Organisations (RTOs). The traditional business model includes real estate prices dictating location of campuses; architecture dictating class sizes; industrial relations dictating the number and length of sessions and prescribing tight role descriptions; queues of students enrolling in February and July each year; and students seated in teacher-dominated classrooms. In contrast, an e-business basis for RTOs would involve the use of electronic communication to improve business performance, improve the use of existing resources, enhance existing services and increase market reach.

An e-business model for RTOs would include the following features: the development of new relationships with customers, using electronic communication to strengthen the relationship; the pursuit of new student markets; and the development of new relationships and alliances between providers. In this new arena of potential and threat, of disintermediation and reintermediation, there will be new roles for new intermediaries; and there will emerge new ways of supporting teaching and learning. Progressive education and training organisations will realize the potential offered by e-business and enjoy the fruits of reintermediation.

The business case for incorporating sustainability in office buildings : the adaptive reuse of existing buildings

The effect of climate change and global warming has received increased attention in society with constant reminders about the importance of energy efficiency and sustainability in buildings. Whilst the focus is often placed on smaller items such as plastic bags, air conditioners and motor vehicles, the emphasis has recently shifted to structures in the built environment. Office buildings have been identified as contributing significantly to global warming during their building lifecycle with a substantial contribution to CO2 omissions. In response, building designs and construction techniques have evolved over time to improve energy efficiency and reduce CO2 omissions. Whilst property valuers, managers and analysts must remain up-to-date regarding changes, relatively little research has been conducted about whether and how increased sustainability, such as signified in a Green Star rating affects a property’s highest and best value and long-term lifecycle. This study investigates the degree to which sustainability is understood in the property marketplace, especially in relation to property values with the emphasis placed on a cost- benefit analysis from both an owner’s and tenant’s perspective. Whilst it may be argued that incorporating sustainability into a new office building is cost prohibitive on a financial cost-benefit analysis, often various minor steps can be taken to upgrade the sustainability of an existing building. This project examines recent trends in capital expenditure to increase the sustainability of offices and where Green Star ratings have been applied to establish whether any corresponding increase in value is evident. In order to develop a researchframework, a thorough literature review will be conducted of recent Australian and overseas studies. This will enable links between sustainability and office buildings to be highlighted, and vitally how they affect a property’s value in both the short and long-term.

Investor perception of the business case for sustainable office buildings : evidence from New Zealand

Over recent years the global market for sustainable commercial property has been growing in importance, with rapid growth occurring overseas that has led to substantial changes in the property markets. The New Zealand property industry has been recently introduced to the concept of sustainability, and although still at an early stage is already noticing the accelerating uptake of sustainability in the industry. Although certain measures have been taken by the New Zealand Green Building Council and government mandates, there remains still a common assumption that there is considerable hesitation and skeptism in the market from both an investor’s and a building owner’s perspective.

The research presented in this paper reports on the results of an investigation into the market perception toward sustainable buildings from the investment community in New Zealand. Property developers and investors from New Zealand were surveyed about their perception of sustainable buildings in New Zealand and their actions with regards to their own commercial portfolios, as well as the impact sustainability is having upon investment decisions. This paper presents the results of research conducted into the relationship between the elements of sustainability and the market value of an office building. The paper provides an insight into the rapidly evolving area of sustainability and office buildings, with the emphasis placed on the valuation process that seeks to assess a hypothetical purchaser’s perspective of this relationship.

Closing the gap? Building surveyors in Oceania

Purpose – The Royal Institution of Chartered Surveyors (RICS) has implemented a policy to expand its influence around the world. Quantity or construction surveyors had an established presence and history of working overseas, offering their services particularly in the Middle- and Far-East. Property surveyors found the transition to working in European Union (EU) countries relatively straightforward and numerous UK property consultancies have European, Asian, North American and Oceanic offices. Furthermore UK-based firms establishing partnerships with overseas real estate firms expanded significantly over the past decade. Building surveying (BS) is a different case. Small numbers work in commonwealth countries but it is limited and in many countries professional and academic qualifications are not recognised. This paper aims to consider the extent of the barriers and opportunities facing RICS chartered building surveyors (CBS) in Oceania (taken as Australia, New Zealand, Papua New Guinea and Fiji) and whether the gap is closing.
Design/methodology/approach – A desktop study reviewed the political, economic and sociological issues that affect the employment opportunities and professional services CBS offer throughout the world. Six opportunities and ten barriers were put to the RICS Oceania Building Surveying Faculty to ascertain their perceptions of these barriers and opportunities. No previous study had identified barriers and opportunities in Oceania for the BS and this research adopted a census survey of RICS practitioners currently employed in the region and the results form the most comprehensive picture of the current position.
Findings – Many respondents felt that stronger links and/or mergers with the different Oceania professional property and surveying bodies would open a large field of opportunities to the CBS. Some provided comments on future business opportunities, for example “leaky buildings,”"dilapidations/‘ make good’ work”, and seemed to be in general agreement that, as businesses came to know the benefits of protecting themselves from rogue tenants (and landlords) by using the services of a CBS, then opportunities would continue to rise. The principal barrier is communicating those skills and the value they add.
Research limitations/implications – The limitations that affected this research were time constraints and communicating with surveyors in Oceania, to whom the authors were not permitted direct access. The research methodology methods were, with hindsight, not ideal for the type and range of data that the researchers sought.
Originality/value – The research will be of use to building surveyors and providers of building-surveying education in Oceania.