Reference-dependent analysis of capital structure and REIT performance

Bao, Helen X. H.; Gong, Cynthia M.

doi:10.1016/j.socec.2017.05.008

Cited by 10 publications

(5 citation statements)

References 55 publications

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“…Excessive trading caused by overconfidence negatively affects investment performance. Unfortunately, real estate markets are known to be a hot bed for behavioral anomalies and biases (see, e.g., Bao and Gong 2017;Bokhari and Geltner 2011;Liu et al 2015), and overconfidence is no exception (Eichholtz and Yönder 2015;Tan 2017;Yung et al 2015). Our study makes the first attempt to empirically verify the overconfidence effect in the REIT sector.…”

Section: Discussionmentioning

confidence: 91%

Investor Overconfidence and Trading Activity in the Asia Pacific REIT Markets

Bao

2020

JRFM

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Overconfidence is one of the most robust behavioral anomalies in financial markets. By attributing investment gains to their ability, investors become overconfident and trade aggressively in subsequent periods. Evidence from stock markets shows that overconfidence leads to excessive trading and, subsequently, inferior investment performance. However, studies on overconfidence effect are lacking in the real estate sector, which is particularly true for Asia Pacific real estate investment trust (REIT) markets. Thus, this study examines the overconfidence effect in six Asia Pacific REIT markets, namely, Australia, Hong Kong, Japan, Singapore, South Korea, and Taiwan. The study finds that the overconfidence effect is more conspicuous during market boom periods or in inefficient market conditions. In addition, simulation analysis demonstrates that overconfidence could lead to rather large volumes of excessive trading activities in certain markets. Findings are robust across the alternative measures of control variables. Moreover, the policy implications of the research are also discussed.

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Section: Discussionmentioning

confidence: 91%

Investor Overconfidence and Trading Activity in the Asia Pacific REIT Markets

Bao

2020

JRFM

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“…For instance, Morri and Jostov [76] study the effects of leverage on pan-European REITs during and post the financial crisis to determine the cross-sectional effects on performance. In addition, Bao and Gong's [77] framework that examined leverage return causality in terms of profit and loss, showed their relationship as explained by the level of leverage within a firm's capital structure. Therefore, this cluster was more focused on the balance sheet management structure of REITs firms and how this can affect performance under normal and turbulent markets.…”

Section: Discussion and Integration Of The Emerging Clusters And Cont...mentioning

confidence: 99%

Research Trends and Directions on Real Estate Investment Trusts’ Performance Risks

Okoro

Ayaba

2023

Sustainability

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The status of real estate investment trusts (REITs) rose in investment decisions and research since 2008, after the global financial crisis (GFC) and the surge in REITs. However, the sector is still in its infancy in most emerging markets and African countries. The current study examines the literature on the performance of REITs and the related risks using bibliometric and content analyses. The study’s objectives were to determine the research trends on the topic since 2008, the prominent authors, countries, and sources, the knowledge trend and themes associated with the existing research to date, and future or new directions for research. Materials from 2008 to 2022 indexed in the Scopus database were retrieved and visualised using VOSviewer software. The findings revealed that publications were mostly in Australia, Italy, Singapore, and Canada. The co-authorship links were dominant among the Australian authors. The themes that emerged were centred around REITs’ portfolio measurement, risk management in diversified portfolios, capital structure, efficiency measurement, corporate governance, portfolio risk assessment, portfolio construction, and asset allocation strategies. The findings are envisaged to be beneficial in informing further research directions on the subject. The performance threats are also highlighted for industry stakeholders’ decision-making and strategic planning around REITs’ sustainability.

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“…In these terms, it is confirmed that every company has its own characteristics and, simultaneously, may be located in distinct regional contexts. Thus, a path adapted to the company and its context should be sought (Dos-Santos, Dorow & Beuren, 2016;Bao &Gong, 2017 andMaziriri &Mapuranga, 2017).…”

Section: Discussionmentioning

confidence: 99%

Cost Management in Micro and Small Companies in the Mining Sector

Guidi

Morgan

Montebelo

et al. 2018

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According to Sebrae, micro and small companies represented 27% of the GDP in 2011 and 98.5% of all private companies in 2015. Despite this importance, in most cases they do not have employees with extensive cost management knowledge and the management practices of large companies are also repeated in them. Therefore, the aim of this paper is to analyze the operability of cost management at the micro and small companies that act in the mining and processing of dimension stones sector, searching for emphases on the presence of isomorphism. One hundred and sixty-two (162) companies were investigated in order to operationalize this study. A structured questionnaire was used as a data collection procedure. Three different approaches were used in the statistical analysis of the collected data: descriptive statistics; the Mann-Whitney U test and Fisher’s exact test, and confirmatory and exploratory factor analysis. The results show the presence of mimetic isomorphism in the cost management practices of the companies researched. The research is limited to the sample, therefore, its findings can not be generalized. Based on this study, it was observed that future research should further develop the characterization of this economic phenomenon and study which resources would be required to improve management cost in micro and small companies in the analyzed segment. This is the first work that found the presence of mimetic isoformism among micro and small companies in the mining sector.

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Reference-dependent analysis of capital structure and REIT performance

Cited by 10 publications

References 55 publications

Investor Overconfidence and Trading Activity in the Asia Pacific REIT Markets

Investor Overconfidence and Trading Activity in the Asia Pacific REIT Markets

Research Trends and Directions on Real Estate Investment Trusts’ Performance Risks

Cost Management in Micro and Small Companies in the Mining Sector

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