The pricing of European non-performing real estate loan portfolios: evidence on stock market evaluation of complex asset sales

This study examines the effect of geographic scope in mitigating the adverse impact of the COVID-19 pandemic in the real estate sector. Utilizing the Chinese setting over the two-month period in 2020 from the beginning of the outbreak to the successful containment of the spread of virus, we show that while the pandemic has negatively impacted real estate firm returns, firms with broader geographic scope and more geographically diversified property allocations have managed to better endure the crisis. We further find that firms with higher leverage report lower returns during the pandemic irrespective of their geographic scope, but larger firms can lessen the adverse impact of the pandemic only if they have adopted a more diversified strategy. Overall, our study provides novel evidence on the benefit of diversification by demonstrating the importance of geographic scope and diversification at times of crises. Specifically, we show corporate diversification could be especially useful to mitigate the negative stock market reactions resulting from the pandemic. Moreover, diversification could even become essential for larger firms that are expected by the market to be more diversified.

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Linkages between cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles

Journal of European Real Estate Research ◽

10.1108/jerer-05-2015-0024 ◽

2016 ◽

Vol 9 (2) ◽

pp. 123-146 ◽

Cited By ~ 1

Author(s):

Kim Hiang Liow

Keyword(s):

Real Estate ◽

Stock Market ◽

Business Cycles ◽

Spillover Effects ◽

Real Estate Market ◽

Stock Market Index ◽

Content Type ◽

Market Index ◽

Cross Country ◽

The Cross

Purpose This research aims to investigate whether and to what extent the co-movements of cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles are linked across G7 from February 1990 to June 2014. Design/methodology/approach The empirical approaches include correlation analysis on Hodrick–Prescott (HP) cycles, HP cycle return spillovers effects using Diebold and Yilmaz’s (2012) spillover index methodology, as well as Croux et al.’s (2001) dynamic correlation and cohesion methodology. Findings There are fairly strong cycle-return spillover effects between the cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles. The interactions among the cross-country business cycles, cross-country stock market cycles and cross-country real estate market cycles in G7 are less positively pronounced or exhibit counter-cyclical behavior at the traditional business cycle (medium-term) frequency band when “pure” stock market cycles are considered. Research limitations/implications The research is subject to the usual limitations concerning empirical research. Practical implications This study finds that real estate is an important factor in influencing the degree and behavior of the relationship between cross-country business cycles and cross-country stock market cycles in G7. It provides important empirical insights for portfolio investors to understand and forecast the differential benefits and pitfalls of portfolio diversification in the long-, medium- and short-cycle horizons, as well as for research studying the linkages between the real economy and financial sectors. Originality/value In adding to the existing body of knowledge concerning economic globalization and financial market interdependence, this study evaluates the linkages between business cycles, stock market cycles and public real estate market cycles cross G7 and adds to the academic real estate literature. Because public real estate market is a subset of stock market, our approach is to use an original stock market index, as well as a “pure” stock market index (with the influence of real estate market removed) to offer additional empirical insights from two key complementary perspectives.

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Real Estate Can Be a Haven from Stock Market Volatility

The Management Accountant Journal ◽

10.33516/maj.v54i11.46-48p ◽

2019 ◽

Vol 54 (11) ◽

pp. 46

Author(s):

Mohammad Khaja Moinoddin

Keyword(s):

Real Estate ◽

Stock Market ◽

Market Volatility ◽

Stock Market Volatility

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Factors Affecting the Performance of Kuwait Stock Market

Journal of Sustainable Development ◽

10.5539/jsd.v9n5p23 ◽

2016 ◽

Vol 9 (5) ◽

pp. 23

Author(s):

Ebrahim Merza ◽

Sayed-Abbas Almusawi

Keyword(s):

Interest Rate ◽

Real Estate ◽

Stock Market ◽

Banking Sector ◽

Stock Exchange ◽

Consumer Price Index ◽

Gold Price ◽

Oil Price ◽

Factors Affecting ◽

Insurance Sector

<p>This paper aims at finding the effective factors that influence three sectors in Kuwait stock exchange market (KSE) in addition to the whole stock market. The three sectors are banking, real estate and insurance sectors. The paper measures KSE performance through the average share prices calculated on a quarterly basis starting from 2005 until first quarter of 2015. It is found that each sector behaves differently towards macroeconomic variables. The most important determinants for the KSE overall market performance were found to be gold price and the deposits rate. Individually, the banking sector is influenced by consumer price index, interest rate on loans, oil price and gold price. The insurance sector is influenced by money supply, residential real estate price and oil price. The real estate sector is influenced by the exchange rate with respect to US dollars, interest rate on loans, oil price and gold price.</p>

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