scholarly journals International Real Estate Review

2010 ◽  
Vol 13 (3) ◽  
pp. 282-322
Author(s):  
Massimo Biasin ◽  
◽  
Anna Grazia Quaranta ◽  
Keyword(s):  
Real Estate ◽  
Financial Risk ◽  
Market Price ◽  
Policy Implications ◽  
Share Price ◽  
Prudential Regulation ◽  
Market Prices ◽  
Capital Theory ◽  
Bankruptcy Risk ◽  
Almost All

In contrast to the US experience, most international (European) real estate investments trusts (REITs) are subject to prudential regulation. This paper investigates the effects of prudential regulation on capital structures and consequently, the REIT share values of major legal and market constraints (i.e. leverage limitations, market discount on net asset value (NAV), tax controls) that affect non-US REITs. Italian market data are used for an empirical analysis. Our hypothesis is that in a constrained environment, the effects on share price significantly depend on the adopted valuation perspective, i.e. if shares are valued by following a NAV or a financial approach. The logic for this hypothesis is that the two valuation methodologies perceive leverage and implied financial risk differently. In particular, we argue that NAV valuation techniques incentivise REITs to maximize leverage regardless of the financial theory which indicates a contrasting impact of debt on the market value of shares. Differences in financial risk perception could also partially explain market price discounts on NAVs.The empirical results seem to support these expectations. Almost all Italian REITs tend to increase debt ratios over time. NAV discounts are significantly related to leverage. The discount effect is largely attributable to NAV increases that result from rising debt levels. On the contrary, share market prices tend to be independent from leverage. The latter result may indicate that the classic capital theory applies and current debt ratios do not imply bankruptcy risk. The results have significant policy implications in terms of an optimal regulatory design.

scholarly journals QUANTITATIVE ANALYSIS OF THE BEHAVIOR OF NATIONAL MEXICAN REAL ESTATE PRICES

2020 ◽  
Vol 25 (73) ◽  
pp. 490-507
Author(s):  
Michael Demmler ◽  
Denise Gómez Hernández
Keyword(s):  
Real Estate ◽  
Quantitative Research ◽  
Market Price ◽  
Preliminary Evidence ◽  
Real Estate Market ◽  
Research Approach ◽  
Market Prices ◽  
Macroeconomic Variables ◽  
Financial Bubble ◽  
Real Estate Prices

OBJECTIVE: To explain Mexican home prices using fundamental, macroeconomic variables in order to identify possible financial bubble tendencies within the Mexican national housing market during the period 2005 to 2018. MATERIAL AND METHOD: The present study analyzes quarterly data of Mexican real estate market prices and various fundamental, macroeconomic variables during the period 2005 to 2018. The quantitative research approach of the study is based on descriptive statistics and regression analyses. RESULTS: The main results of the study are as follows: First, a simple comparison between market prices and fundamental values shows some kind of (preliminary) evidence of bubble tendencies on the Mexican national real estate market. Secondly, a more sophisticated regression analysis concludes that especially the fundamental variables outstanding mortgage volume and unemployment rate can explain real estate market price movements almost perfectly. CONCLUSIONS: The hypothesis of a financial bubble within the national Mexican real estate market is then rejected, in the considered period 2005 to 2018.

scholarly journals The Relationship of Stock Prices and Stock Market Performance Ratios in Companies Trading on Borsa Istanbul: An Application in Companies with the Highest Trading Volume

2021 ◽  
Author(s):  
Bilgehan Tekin ◽  
Seda Nur Bastak
Keyword(s):  
Regression Analysis ◽  
Stock Market ◽  
Stock Prices ◽  
Trading Volume ◽  
Market Price ◽  
Share Price ◽  
Panel Regression ◽  
Market Prices ◽  
Positive Direction ◽  
Stock Market Performance

In this study, the effect of certain ratios that investors pay attention to on stock prices in Borsa Istanbul is examined. For this purpose, 30 of the stocks with which the investors traded the most were taken as a sample. In the study, 30 companies with the highest average trading volume in the analysis period were selected according to their transactions in Borsa Istanbul. The study covers the period between 2010: 1Q-2019: 4Q. Variables included in the study are stock market price, P/E ratio, trading volume, market to book ratio, beta, free float percentage. In this study, it has been tried to understand at what level the stock market prices of companies' publicly traded stocks are affected by the indicators that emerge as a result of the transactions realized in the stock exchange, rather than the ratios discussed within the scope of financial analysis and ratio analysis, examples of which are very common in the literature. Panel regression analysis was performed in the study. Before proceeding to the panel regression analysis, preliminary tests were carried out and the model was tried to be given its most suitable form. For this purpose, multicollinearity tests, cross section dependency test, second generation unit root tests, varying variance test, panel regression model selection were made. The model created in the last stage was estimated. As a result of the study, it was seen that the Price/Earnings, Transaction Volume, Market Value/Book Value and Beta variables were significantly effective on the stock market prices of the companies' stocks. Among these variables, BETA affects negatively, while other variables affect positively. The variable with the highest effect on the share price is the negative BETA coefficient and the positive direction is the trading volume.

scholarly journals Hayek on the wisdom of prices: a reassessment

2013 ◽  
Vol 6 (1) ◽  
pp. 82 ◽  
Author(s):  
Richard Bronk
Keyword(s):  
Financial Risk ◽  
Market Price ◽  
Economic Planning ◽  
Feedback Loops ◽  
Risk Models ◽  
Market Prices ◽  
Recent Financial Crisis ◽  
Dominant Narratives ◽  
Central Economic

This paper re-examines Hayek's insights into the problem of knowledge in markets, and argues that his analysis remains pertinent but has serious flaws. His central thesis—that the market price system is essential for communicating information and coordinating transactions wherever knowledge is dispersed and innovation renders the future uncertain—remains a potent explanation for the failures of central economic planning. His analysis that aggregate statistics necessarily abstract from contextual and tacit knowledge has important but widely ignored implications for the contemporary use of statistics in financial risk models. The recent financial crisis, however, shows that market prices can give very misleading signals for long periods, and it represents a key example of ways in which Hayek's thesis is incomplete. In particular, Hayek's analysis falls short by ignoring the role of dominant narratives, analytical monocultures, self-reinforcing emotions, feedback loops, information asymmetries and market power in distorting the wisdom of prices.

Effective Planning for Rural Development in A Democratic South Africa: The Prospects of Rural Cooperatives

2021 ◽  
Vol 18 (1) ◽  
Author(s):  
France Khutso Lavhelani Kgobe
Keyword(s):  
South Africa ◽  
Rural Development ◽  
South African ◽  
Rural Areas ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Rural Cooperatives ◽  
The Government ◽  
Almost All ◽  
Effective Planning

This paper explores the potency of rural cooperatives for the effective planning and implementation of rural strategies to address poverty. Rural cooperatives function as a participatory approach that provides the potential to equip and empower people in rural areas with various skills. Hence, rural cooperatives represent the means and strategies to unshackle rural people from the vicious circle of poverty. The contestation about a deadlock of rural development has become pertinent in the recent and ongoing political transformation in South Africa. This paper is grounded on the social capital theory and its ideals. As such, it depends on a literature review for its premise, argument, crux and purpose, as well as drawing up results and conclusions. The paper gathers information in respect of various scholars’ notions on rural cooperatives and rural development from related articles, journals and books. The paper reveals that where the South African government is confronted and characterised by some form of upheaval and service delivery challenges, so rural cooperatives are fit to capacitate citizens to avoid depending on the government for scarce resources. The paper further reveals that rural cooperatives are deemed to ameliorate the long-standing patterns of developmental backlogs in almost all South African municipalities. The conclusion that can be made from this paper is that the authentic promotion of rural development in the formulation of a well-informed legislative framework, that is clear and unambiguous, can deal effectively with the challenges of rural cooperatives.

UJI TINGKAT KESESUAIAN NILAI JUAL OBJEK PAJAK DENGAN MENGGUNAKAN APLIKASI ASSESSMENT RATIO

INFO ARTHA ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 45-53
Author(s):  
Swasito Adhipradana Prabu
Keyword(s):  
Market Price ◽  
Current Level ◽  
Accuracy Rate ◽  
Tax Base ◽  
Market Prices ◽  
Administration System ◽  
Positive Correlation ◽  
Big Cities ◽  
Better Than

The decentralization of PBB-P2 in Indonesia is expected to produce a better PBB-P2 administration system. One indicator of a better PBB-P2 administration system is a fair collection of PBB-P2 based on tax base (NJOP) valuation close to market prices. This study examines whether NJOP, as the basis for the imposition of PBB-P2, is in accordance with the market price using the assessment ratio. This study found that the current level of accuracy of the NJOP has not met the standard agreed upon by the IAAO. In addition, this study also found that the NJOP accuracy rate in big cities was slightly better than the NJOP accuracy rate in other cities. In addition, this study also found that there was no positive correlation between NJOP updating activities through SPOP filling and NJOP accuracy. Desentralisasi PBB-P2 di Indonesia diharapkan menghasilkan sistem penatausahaan PBB-P2 yang lebih baik. Salah satu indikator dari sistem penatausahaan PBB-P2 yang lebih baik adalah pemungutan PBB-P2 yang adil dengan dasar pengenaan pajak (NJOP) yang mendekati harga pasar. Studi ini meneliti apakah NJOP sebagai dasar pengenaan PBB-P2 sudah sesuai dengan harga pasar menggunakan assessment ratio. Penelitian ini menemukan bahwa tingkat akurasi NJOP saat ini belum memenuhi standar yang disepakati oleh IAAO. Selain itu, penelitian ini juga menemukan bahwa tingkat akurasi NJOP di kota besar, sedikit lebih baik dibanding tingkaat akurasi NJOP di kota-kota lainnya. Selain itu, penelitian ini juga menemukan bahwa tidak ada korelasi positif antara kegiatan pemutakhiran NJOP melalui pengisian SPOP dengan tingkat akurasi NJOP.

EXPECTED SHORTFALL PADA PORTOFOLIO OPTIMAL DENGAN METODE SINGLE INDEX MODEL (Studi Kasus pada Saham IDX30)

2021 ◽  
Vol 10 (2) ◽  
pp. 269-278
Author(s):  
Eis Kartika Dewi ◽  
Dwi Ispriyanti ◽  
Agus Rusgiyono
Keyword(s):  
At Risk ◽  
Value At Risk ◽  
Market Price ◽  
Expected Shortfall ◽  
Optimal Portfolio ◽  
Share Price ◽  
Single Index ◽  
Index Model ◽  
Single Index Model ◽  
Stock Investment

Stock investment is a commitment to a number of funds in marketable securities which shows proof of ownership of a company with the aim of obtaining profits in the future. For obtaining optimal returns from stock investments, investors are expected to form optimal portfolios. The optimal portfolio formation using the Single Index Model is based on the observation that a stock fluctuates in the direction of the market price. It shows that most stocks tend to experience price increases if the market share price rises, and vice versa. Selection of optimal portfolio-forming stocks on IDX30 using the Single Index Model method produces 4 stocks, that are BRPT (Barito Pacific Tbk.) with weight 31.134%, ICBP (Indofood CBP Sukses Makmur Tbk.) 17.138%, BBCA (Bank Central Asia Tbk.) 51.331% and SMGR (Semen Indonesia (Persero) Tbk.) 0.397%. Every investment must have a risk, for that investors need to calculate the possible risks that occur before investing. To calculate risk, Expected Shortfall (ES) is used as a measure of risk that is better than Value at Risk (VaR) because ES fulfill the subadditivity. At the 95% confidence level, the ES value is 23.063% while the VaR value is 10.829%. This means that the biggest possible risk that an optimal portfolio investor will receive using the Single Index Model for the next five weeks is 23.063%.Keywords : Portfolio, Single Index Model, Expected Shortfall, Value at Risk.

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