There are many reasons for companies to hold real estate, including for operating business, production, sales, and providing services. Previous researches show that corporate real estate (CRE) is an important part of company assets, and it will affect stock returns and risk of company. The main object of this study is to investigate the impact of changes in CRE on stock returns and risk of company in Taiwan. Moreover, this study analyzes how CRE affect toward different industry during each business cycle period. Then, we provide some suggestions to stockholders and managers. The data set from 1992 through 2011 in Taiwan stock market, the relationship between CRE and stock returns and risk are analyzed using two stage least squares regression model. The empirical results show that, on average, higher CRE appears to be associated with higher abnormal return performance and higher total risk. On the other hand, CRE show negative impact on business operation such as lower adjusted return on assets and higher risk of bankruptcy. Furthermore, CRE factor is associated with higher abnormal return performance and higher firm value when company with small asset size, high P/E ratio or newly establish characters. Results also indicate that the impact of CRE on firm¡¦s stock price and risk depend on industries, business cycle period, and firm characters. CRE show negative impact on Textile, Tourism, and Trading and Consumers' Goods Industry. In Food Industry, higher CRE factor is associated with lower system risk and positive impact on business operation.

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