The effect of corporate real estate ownership on R&D innovation: credit relief vs. resource replacement in China

2020 ◽  
Vol 34 (1) ◽  
pp. 44-62
Author(s):  
Jie Deng ◽  
Jingjing Yang
Keyword(s):  
Real Estate ◽  
Corporate Real Estate ◽  
Resource Replacement ◽  
Estate Ownership

Corporate Real Estate Ownership and Productivity Uncertainty

2015 ◽  
Vol 44 (2) ◽  
pp. 521-547 ◽  
Author(s):  
Daxuan Zhao ◽  
Tien Foo Sing
Keyword(s):  
Real Estate ◽  
Corporate Real Estate ◽  
Estate Ownership

The risk of real estate ownership: evidence from German equities

2015 ◽  
Vol 8 (2) ◽  
pp. 107-129 ◽  
Author(s):  
Karim Rochdi
Keyword(s):  
Risk Factors ◽  
Real Estate ◽  
Risk Premium ◽  
Balance Sheet ◽  
Systematic Risk ◽  
Considerable Proportion ◽  
Content Type ◽  
Corporate Real Estate ◽  
Systematic Risk Factors ◽  
Estate Ownership

Purpose – This paper aims to investigate the repercussions and impact of corporate real estate on the returns of non-real-estate equities in a time-series setting. While the ownership of real estate constitutes a considerable proportion of most listed firms’ balance sheet, in the existing literature, whether or not the benefits outweigh the risks associated with corporate real estate, is the subject of controversy. Design/methodology/approach – The role of corporate real estate ownership in the pricing of returns is examined, after taking well-documented systematic risk factors into account. Employing a data sample from 1999 to 2014, the conditions and characteristics faced by firms with distinct levels of corporate real estate holdings are identified and analyzed. Findings – The findings reveal that corporate real estate intensity indeed serves as a priced determinant in the German stock market. Among other results, the real-estate-specific risk factor shows countercyclical patterns and is particularly relevant for companies within the manufacturing sector. Practical implications – The findings provide new insights into the interpretation of corporate real estate and expected general equity returns. Thus, the present analysis is of particular interest for investors, as well as the management boards of listed companies. Originality/value – To the best of the author’s knowledge, this is the first paper to investigate the ownership of corporate real estate as a priced factor for German equities, after accounting for the well-documented systematic risk factors, namely, market (market risk premium), size (small minus big) and book-to-market-ratio (BE/ME) (high minus low).

scholarly journals The Impact of Corporate Real Estate Ownership on the Firm Value

2021 ◽  
Vol 7 (3) ◽  
pp. 163-183
Author(s):  
Gwang Ho Han ◽  
Hye Eun Han ◽  
Seung Han Ro
Keyword(s):  
Real Estate ◽  
Firm Value ◽  
Corporate Real Estate ◽  
The Impact ◽  
Estate Ownership

The pricing of corporate real estate holdings on the UK capital market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julian Seger ◽  
Kristina Stoner ◽  
Andreas Pfnuer
Keyword(s):  
Real Estate ◽  
Capital Market ◽  
Service Industries ◽  
Content Type ◽  
Balance Sheets ◽  
Corporate Real Estate ◽  
The Uk ◽  
Real Estate Assets ◽  
Estate Ownership ◽  
The Capital Market

Purpose The purpose of this study is to find out if corporate real estate ownership is priced into the capital market performance of non-property companies in the UK. This is of particular interest because ownership still represents a significant weight on the balance sheets and is predominantly considered unfavourable due to its bulkiness and difficult revisability in the event of changes in space demand. This draws attention to the UK as one of the most important European economies that have been exposed to strong uncertainties and dynamics, for example, due to the withdrawal voting of the United Kingdom from the European Union (BREXIT). Design/methodology/approach A first look at the real estate assets reported in balance sheets provides insight into possible changes in ownership strategy. This serves as a basis for subdividing companies based on their real estate assets using a portfolio-based approach and that are then analysed using the Fama and French multi-factor model with regard to their influence on capital market returns. Findings In general, the share of real estate assets has fallen over the past 10 years, although coinciding with BREXIT voting, some industries such as manufacturing show a turnaround. At the same time, ownership is priced in as a factor on the capital market, which applies to a sample across industries, as well as to separately considered sectors in the manufacturing and service industries. The pricing also shows a counter-cyclical pattern. Practical implications Corporate real estate management should be aware of the negative influence of ownership, especially against the background of economic fluctuations. The reduction of ownership can reduce the associated cost of capital and increase company success. Originality/value Previous UK-related studies mostly refer to a period before the global economic crisis in 2008, and therefore, are too old to reflect a changed view on corporate real estate ownership because of new corporate environmental conditions, based on inaccurate proxies or mainly refer to the retail segment. This research gap is closed.

scholarly journals Risk and Real Estate Ownership: Empirical Evidence of Hotels in Singapore

1970 ◽  
Vol 2 ◽  
pp. 193-200
Author(s):  
Fawzla Farzana ◽  
Md Ghulam Murtaza
Keyword(s):  
Real Estate ◽  
Systematic Risk ◽  
Least Square ◽  
Real Property ◽  
The Real Estate ◽  
Corporate Real Estate ◽  
Negative Effect ◽  
Hotel Sector ◽  
The Impact ◽  
Estate Ownership

This paper examined the impact of real property ownership on the systematic risk of hotel companies in Singapore. This issue is interesting because few studies have been carried out on this topic. The hypothesis is that the real estate ownership would impose negative effect on the systematic risk of company in hotel sector because corporate real estate is commonly considered as an instrument for diversification in a mixed portfolio. To examine the effect, two-stage least-square regression was applied. The data was collected from published sources and other data streams. The results indicate that real estate ownership has impact on the systematic risk of companies. The implication is that the different strategies of companies may result in the different directions of impacts.DOI: http://dx.doi.org/10.3329/jbip.v2i0.9579  Journal of Bangladesh Institute of Planners Vol. 2, December 2009, pp. 193-200

Corporate real estate ownership, cash and credit ratings

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stoyu I. Ivanov ◽  
Matthew Faulkner
Keyword(s):  
Real Estate ◽  
Credit Ratings ◽  
Cash Holdings ◽  
Commercial Real Estate ◽  
Firm Level ◽  
Content Type ◽  
Corporate Real Estate ◽  
Prior Literature ◽  
Using Data ◽  
Estate Ownership

PurposeRecently, multiple examples of large firms acquiring real estate have polarized investors. Who are the firms investing in real estate and what are their characteristics? How does this investment in owning commercial real estate relate to cash holding policies? Is owning commercial real estate associated with better credit ratings? This study questions commonly held beliefs in finance that firms prefer to lease their real estate rather than own it and examines what are the differences in outcomes between the choices.Design/methodology/approachThe authors identify three testable hypotheses based on the research questions and prior literature. The authors use univariate and multivariate analyses to test these hypotheses along with thorough robustness and addressing of endogeneity issues to confirm that our results hold in a variety of settings. The authors employ new proxies of real estate to the literature from Bloomberg and firm level data from Compustat.FindingsThe authors show that more firms within the S&P 500 choose to own commercial real estate. The authors also find many significant differences in corporate characteristics between firms who own real estate and those who do not, such that firms with real estate ownership have significantly: higher growth opportunities, higher R&D expenses, higher working capital levels, lower capital expenditures, higher leverage and higher cash flow. Firms with corporate real estate (CRE) ownership hold less cash. Contingent on real estate ownership, firms have higher cash holdings as their real estate holdings increase. Last, firms with commercial real estate ownership have higher credit ratings.Originality/valueOne of the main contributions of this study is in the use of a new specific proxy using data on corporate land, buildings and construction in progress, which to the best of our knowledge has not been done in the past. Other studies focus on aggregate property, plant and equipment data which blurs the CRE ownership picture. Additionally, the authors provide an underexplored variable of CRE ownership to its impacts of cash holdings and credit ratings, which had yet to be uncovered.

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