The role of investment property appraisal in European real estate companies

Mäki, Juha

doi:10.1108/jerer-11-2019-0038

Cited by 4 publications

(5 citation statements)

References 42 publications

(60 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Real estate appraisers support businesses in evaluating real estate investment opportunities and maximizing returns (Mäki, 2020). By analyzing factors such as property value, rental income, operating expenses, and market trends, appraisers assess the financial viability and potential risks of investment properties.…”

Section: Strategic Functions Of Real Estate Appraisersmentioning

confidence: 99%

Unveiling the Value Proposition : Real Estate Appraisers as Strategic Partners in Business Decision- Making

Ziyad Ibraheem Alzaidan

2024

IJIST

View full text Add to dashboard Cite

This study investigates the pivotal role of real estate appraisers in strategic decision-making and value enhancement, paying special attention to the planning aspects often overlooked in existing literature. Despite an abundance of research on real estate valuation, many studies have predominantly focused on financial aspects, neglecting crucial planning dimensions. Additionally, with Saudi Arabia experiencing rapid growth in its real estate market and heightened competition among valuation companies. In response to these dynamics, the study employs a descriptive approach to examine literature reviews, aiming to bridge existing gaps by delving into the planning facets of real estate valuation. It particularly considers the establishment of the Saudi Authority for Accredited Valuers (TAQEEM) in early 2017, Through an insightful analysis, it underscores the multifaceted roles of appraisers in risk management, financial reporting, investment analysis, portfolio management, and market intelligence. Additionally, it explores the implications of technological integration in appraisal practices and offers actionable recommendations for maximizing appraiser contributions to business strategy.

show abstract

Section: Strategic Functions Of Real Estate Appraisersmentioning

confidence: 99%

Unveiling the Value Proposition : Real Estate Appraisers as Strategic Partners in Business Decision- Making

Ziyad Ibraheem Alzaidan

2024

IJIST

View full text Add to dashboard Cite

show abstract

“…The use of fair value for investment properties is based on assumptions and hypotheses, which are fundamental elements of PAT. These ideas-that capital markets work well, investors are smart, information is a good thing to have, and people act in their own best interests-help us come up with hypotheses about what makes it important to use a fair value for investment properties (Angelo & Nuryani, 2021;Kadri et al, 2020;Mäki, 2020;Mita & Siregar, 2019;Mulyanti et al, 2020;Sasongko & Marhamah, 2014;Watts & Zimmerman, 1990).…”

Section: Positive Accounting Theory (Pat)mentioning

confidence: 99%

“…Indonesian financial accounting standards (IFAS) 13, which pertains to investment properties, offer alternatives for measurement using fair value or cost after acquiring such properties (Setijaningsih, Handoyo, & Sundari, 2021;Yennisa, Juwiyato, & Budiarto, 2020). The use of fair value provides relevant information for investment decisionmaking because it reflects the true market value of properties (Mäki, 2020;Mulyanti, Darmayanti, & Yunilma, 2020;Sasongko & Marhamah, 2014;Yennisa et al, 2020). This approach is often adopted for its efficiency, ability to reduce political costs, and safeguarding of creditors through conservative accounting practices (Acaranupong, 2017;Mulyanti et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Opportunistic motivation on fair value accounting of investment properties: Does corporate governance matter in Indonesia?

Kholilah,

Rahman,

Atmini

et al. 2024

View full text Add to dashboard Cite

This study examines the influence of opportunistic managers' motivation and corporate governance on using fair value measurement for investment properties. It was conducted on a sample of 126 corporations listed on the Indonesia Stock Exchange from 2016 to 2020, using logistic regression and moderated regression analysis. The results showed that opportunistic motivation significantly affects the use of fair value measurement for investment properties. These results provide empirical evidence that fair value measurement, intended to enhance the relevance and reliability of financial reporting, can be leveraged to maximize corporate profits for certain interests. Additionally, the study indicates that corporate governance structure strengthens management's motivation to utilize fair value for investment properties, contrary to the expected role of corporate governance in mitigating managerial opportunistic behaviour. Future studies could explore alternative measurements, such as the difference in fair value profit/loss, to further support the bonus plan hypothesis in the Positive Accounting Theory framework. The practical implication of this study is to offer an understanding of the rationales behind the choice of accounting policies for investment property. This will enable the development of policies and regulations that safeguard financial statement users from management's opportunistic motives when selecting accounting methods. In addition, this research can also be evaluation material about opportunistic motivations that management may have in implementing IFRS.

show abstract

“…As a result, the estimation of property assets value is more complex than in many other industries (Nordlund et al. , 2022; Mäki, 2020). The complexity stems from asset values are based on expected future payments that are capitalized.…”

Section: Introductionmentioning

confidence: 99%

“…As a result of this, transaction costs on the real estate market are high, and transparency for investors may be low. As a result, the estimation of property assets value is more complex than in many other industries (Nordlund et al, 2022;M€ aki, 2020). The complexity stems from asset values are based on expected future payments that are capitalized.…”

Section: Introductionmentioning

confidence: 99%

Auditor choice in real estate firms: a quality signal?

Palm

Bohman

2023

JERER

View full text Add to dashboard Cite

PurposeReal estate is a capital-intensive industry for which the asset values tend to be highly volatile and uncertain. Transaction costs in the industry are therefore high, and transparency for investors may be low. The need to signal reliable estimates of property assets, in the communication to external stakeholders, can therefore be expected to be of extra importance in this sector. The purpose of this paper is to investigate how real estate firms use big four auditors to signal quality.Design/methodology/approachThe authors use Swedish firm level data containing all limited liability real estate companies in the country to determine the determinants of big four auditors. The data set consists of 34,306 observations and is analyzed through logit regressions.FindingsThe results show that big four companies are primarily contracted by large and mature companies, rather than new firms or firms with volatile financial records, although the latter could be expected to have a large need to signal quality. The authors also find that firms listed on the stock market and firms targeting public use real estate are more inclined to use big four companies.Originality/valueReal estate is a capital-intensive industry for which the asset values tend to be highly volatile and uncertain. Transaction costs in the industry are therefore high, and transparency for investors may be low. The need to signal reliable estimates of property assets, in the communication to external stakeholders, can therefore be expected to be of extra importance in this sector. No prior study of this area has been detected.

show abstract

The role of investment property appraisal in European real estate companies

Cited by 4 publications

References 42 publications

Unveiling the Value Proposition : Real Estate Appraisers as Strategic Partners in Business Decision- Making

Unveiling the Value Proposition : Real Estate Appraisers as Strategic Partners in Business Decision- Making

Opportunistic motivation on fair value accounting of investment properties: Does corporate governance matter in Indonesia?

Auditor choice in real estate firms: a quality signal?

Contact Info

Product

Resources

About