The Effects of Assumption Financing Across Housing Price Categories

This study employs a standard housing valuation model to analyze the capitalization of below-market financing across housing price categories. The study also investigates the effect of secondary financing on housing prices and the effect of the expected holding period on discount capitalization. Using a randomly selected sample of 1981–82 housing transactions the study finds: the discount associated with below-market financing is inversely related to the absolute level of housing prices; secondary financing bears no systematic relationship to housing values; and discount capitalization is inversely related to the expected holding period.     

中国上市公司股权融资与债权融资成本实证研究

本文对中国上市公司IPO后的股权与债权的融资成本进行了实证研究。影响企业市场价值变化的主要因素是行业因素以及企业的初始市值，于是我们选取了家庭耐用消费品行业以及纺织和服装行业的上市公司，对同行业问各组匹配公司进行直接比较，从而发现：站在上市公司股东利益的角度考虑，债权融资成本低于股权融资成本。这主要是股权融资的软约束造成的企业经营业绩下滑，进而导致企业进行多次股权融资行为后市场价值下跌。     

Inflation and Housing Prices*

Home ownership is a claim on the stream of net rents. Like any income-producing asset, the market capitalizes its value. The price-rent multiple depends upon the expected growth rate of revenues and expenses, on financing terms, and on taxes. This paper derives this price-rent multiple in terms of these variables and calculates its value from 1963 through 1978. The results indicate that housing prices grew more rapidly than rents and the CPI largely as the result of a 33% increase in the price-rent multiple over those years. This increase in the capitalization rate occurred, despite higher nominal financing terms, because the relative terms of housing finance tended to ease and because the expected growth rate of rents increased more than its discount rate.     

The Information Content of Method of Payment in Mergers: Evidence from Real Estate Investment Trusts (REITs)

We provide evidence on the information content of the method of payment in mergers by examining shareholder returns in a sample of REIT mergers over the period 1994–1998. When the target firm is publicly held, we find that transactions are always stock-financed, and that acquiring firm shareholders sustain small negative returns around the announcement date. When the target is privately held, cash financing, mixed (stock and cash) financing, and placement of blocks of acquirer stock with target owners are more prevalent. Acquirer returns are positive in stock-financed mergers when the target is private, which is consistent with both the information signaling and monitoring by blockholders hypotheses. Further analysis supports the information signaling hypothesis as the dominant explanation. The effects of other explanatory variables are similar whether the target is public or private. Most significantly, acquiring shareholder returns are negatively related to the acquirer's size, but positively related to the acquirer's use of the UPREIT organizational structure. The positive wealth effects of the UPREIT structure are not fully explained as the capitalization of tax benefits.     

基于投资回收补偿的中国房地产资本化率研究

三大估价方法之一的房地产收益法，其有限年和无限年公式所用的资本化率有较大差别，实际估价中这个问题往往被估价师们所忽视，从而造成估价有误差，而唯有在资本化率中对投资回收进行补偿，才能消除此误差。本首先探讨了资本化率的含义、实质、影响因素及确定原则，进而深入分析年限、投资回收等对资本化率的影响，以此构建了应用于n型公式与非n型公式的资本化率，指出了两公式在投资回收补偿后可以通用的结论。     

The Economic Implications of House Price Capitalization: A Synthesis

In this article, I synthesize an emerging literature that explores the conditions under which public and private investments and intergovernmental transfers are capitalized into local house prices and the broader economic implications of such capitalization. The main insights are: (1) house price capitalization is more pronounced in locations with strict regulatory and geographical supply constraints; (2) capitalization can induce the provision of durable local public goods and club goods; and (3) capitalization effects—which are habitually ignored by policy‐makers—have important adverse consequences for a wide range of policies such as intergovernmental aid and the mortgage interest deduction.     

Flooding and Liquidity on the Bayou: The Capitalization of Flood Risk into House Value and Ease‐of‐Sale

The existing literature focuses on how perceived flood risk affects house value. Search theory, however, implies that flood risks will be capitalized into both house price and liquidity. This article draws on search theory to develop an empirical approach for estimating flood risk capitalization into both price and selling time. The results show the mix of price and liquidity capitalization varies by level of flood risk as well as across housing market phases. Regardless of the specific capitalization pattern, the results illustrate that focusing solely on price without allowing for concomitant liquidity capitalization can yield estimates that understate the full impact of flood risk on house transactions.     

Bias and Error in Mine Project Capital Cost Estimation

Previous analyses of small samples of mining projects have found that feasibility studies tend to underestimate the as-built capital costs of the project. Our review of 63 international mining and smelting projects confirms that as-built capital costs are, on average, 14% higher than as estimated in the bankable feasibility study. There is little attenuation over time of this bias in capital cost estimation, appearing to reflect an absence of learning on the part of the project sponsor or the consulting engineering firm. We argue that this persistence of bias is instead intentional and rational, driven by a scarcity of project financing and the need by project sponsors to inflate the project economics in a bid to secure financing. We find some empirical support for our contention. A second phase of the analysis examines estimation error. Roughly half of all projects' as-built capital costs fall outside of the expected ± 15% of the feasibility study capital cost estimate, even after allowing for intentional estimation bias. Cost overruns of 100% or more happen in roughly 1 out of 13 projects. Smaller projects have less estimation accuracy than large projects. Finally, our analysis of the cost overrun data reveals that a shifted lognormal probability distribution should be used when modeling mining project capital costs in a Monte Carlo analysis.     

外资并购中的国有无形资产资本化研究

外资并购不仅促进了我国国有企业改革与重组，而且加速了国有无形资产资本化趋势，为国有企业改革提供了重要经济资源。与此同时，国有无形资产资本化过程也面临诸多障碍。本文分析了外资通过并购国有企业以取得无形资产的动因．归纳了国有无形资产资本化面临的三大约束，即体制转轨约束、评估理论与方法约束和交易主体博弈约束，并探讨了隐性无形资产显性化的途径。     

Financing Residential Development with Special Districts

This paper empirically examines the extent to which the property tax liability created by financing residential infrastructure using special district bonds is capitalized in house prices. We compare house prices for single‐family detached homes built within development districts to similar properties located outside development districts. Our hedonic specification includes the usual housing characteristics and controls for the influence of spatial attributes using Census Block Group “neighborhood” fixed effects. The preferred empirical specification restricts the data to neighborhoods that have numerous sales of recently constructed single‐family detached homes located both within and outside development districts. The empirical results indicate that house prices for homes located within development districts are lower than house prices for similar homes located outside of development districts, but the amount of property tax capitalization is significantly less than full. Results depend on our Generalized Methods of Moments estimator, which instruments property tax rates using the characteristics of development districts. We identify valid instruments by restricting transactions to properties located in rapidly growing suburban developments.     

Investor Rationality: Evidence from U.K. Property Capitalization Rates

Recent analyses have suggested the irrationality of Australian and U.S. office property investors in that they have failed to raise capitalization rates sufficiently at rental cyclical peaks to account for the obvious mean reversion in real rents and thus have significantly overvalued properties. In this article, we present a model of capitalization rates and explain U.K. office and retail cap rates in an error correction framework. We demonstrate that our proxies for expected real rental growth do, in fact, forecast future real growth and that cap rates reflect rational expectations of mean reversion in future real cash flows. Moreover, property cap rates are linked to the equity capitalization rate (dividend/price ratio) and expected real dividend growth in the expected manner.     

Big House, Little House: Relative Size and Value

How do markets value relative house size in a neighborhood? The literature offers differing rationales: atypical houses sell for less, capitalization of property taxes penalizes larger and benefits smaller houses in mixed neighborhoods and conspicuous consumption reinforces the value of relatively larger houses and reduces the value of relatively smaller houses to consumers. Using a simultaneous price‐liquidity model that controls for neighborhood supply and demand conditions, this article finds a dominant tax capitalization effect on price and marketing time that appears to override any extant atypicality or conspicuous consumption effects.     

The heterogeneous impact of house purchase limits policy on housing prices: Comparison between elite and non-elite school district houses

The effectiveness of housing purchase limits policies has aroused heated debate, yet few discussed its impact on educational capitalization. We examine the heterogeneous effect of housing purchase limits policy on the price of elite school district houses (ESDH) and non-elite school district houses. By exploiting second-hand houses data in Hefei China, we find that the price of ESDH has increased greatly after the limitation, compared with non-elite school districts. Further we discover that the ESDH have lower depreciation risks, and their price is higher in neighborhoods with smaller dwelling area. Our finding indicates that the limits policy may have exacerbated the educational capitalization.     

If You Promise to Build It,Will They Come? The Interaction between Local Economic Development Policy and the Real Estate Market: Evidence from Tax Increment Finance Districts

The analysis in this article examines the impacts of one of the more prominent economic development tools, tax increment financing (TIF) districts, on the local commercial real estate market. The study area is the city of Chicago, a community with a long history of reliance on TIF districts as a means to foster local development initiatives. A treatment effects model is used to address the selection bias often attributed to studies of public policy impacts on real estate markets. The results indicate that commercial properties located within designated TIF districts exhibit higher rates of appreciation after the area is designated a qualifying TIF district.     

Risk perception in housing markets: Evidence from a fighter jet crash

In this study, we investigate the capitalization of flight accident risk in housing prices near military bases in Virginia from 2003 to 2016. We focus on a localized shock caused by a fighter jet crash into an apartment complex near the Naval Air Station Oceana in Virginia Beach. Although flight accident hazards were transparently disclosed by sellers and local governments years beforehand, the crash led to a temporary (approximately 3 years) decline in the prices of properties within accident potential zones (APZ) and by a lesser magnitude, properties slightly outside the APZ boundaries. This analysis sheds light on how market participants react after an extreme event, emphasizing the role of recency in the capitalization of risk.     

Changes in REIT Liquidity 1990–1994: Evidence from Intra-day Transactions

This study uses data on intra-day transactions to analyze whether real estate investment (REIT) liquidity as measured by the bid-ask spread changed from 1990 to 1994, a period during which the industry's market capitalization increased from $8.7 billion to $45 billion. REIT percentage spreads (spread as percentage of share price) narrowed significantly, primarily attributable to higher share prices rather than narrower dollar-value spreads. An empirical model is used to analyze the determinants of percentage spreads. Return variance and share price, not market capitalization are found to be the primary determinants of percentage spreads in both periods. This suggests that the liquidity of REIT securities is similar to that of non-REIT securities with similar prices and return variance. In addition, percentage spreads are wider for REITs trading on the NASDAQ.     

融资结构对创业板公司业绩影响的实证研究

融资结构可分为债务融资和股权融资,债务融资又有不同融资成本、不同融资途径、不同债务期限。债务融资下融资成本、融资途径、债务期限和股权融资与企业绩效有何关系呢？基于此,本文运用2010～2015年创业板上市公司实证研究债务融资和股权融资对公司绩效的影响。研究结果表明：股权融资与公司业绩正相关;债务融资下资产负债率、债务期限结构与公 司业绩正相关,而银行借款率与公司业绩负相关。     

基于FAHP的公租房融资模式选择研究

基于公租房融资现状,结合模糊综合层次分析法(FAHP)构建融资模式选择评价模型。融资主体主要分为政府主导融资、政企合作融资、企业主导融资三类,通过融资主体评价指标确定相应融资主体。在政企合作融资主体类型下构建以运营机制、融资效率、追索权为主要指标的评价体系,结合各指标的影响因子,由下而上将隶属度最高的确定为最佳融资模式。最后以河南省遂平县某拟建公租房为例进行评价,为公租房融资模式的选择提供一定的借鉴。     

高速公路工程不动产价值的动态收益还原法研究

本文分析了高速公路工程不动产的经营收益构成和运营成本构成,应用随机时间序列模型和工程不动产评估理论建立了高速公路工程不动产的净经营收益动态预测模型和还原率动态预测模型,为实现公路工程不动产价值的传统经验静态评估提升及科学动态评估奠定基础。     

Real Estate Investment Trusts, Small Stocks and Bid-ask Spreads

This study examines the liquidity of Real Estate Investment Trusts (REITs), as measured by their bid-ask spread. We find that REIT spreads have increased over the period 1986–1990, are inversely related to market capitalization, and are similar in magnitude to spreads on other stocks of comparable size. Analysis of variance tests indicate that REIT spreads are similar across equity, mortgage and hybrid asset types. Multivariate regression results indicate that market capitalization is the primary determinant of REIT bid-ask spreads, and spreads are larger for National Association of Securities Dealers Automated Quotations (NASDAQ) REITs than for New York Stock Exchange (NYSE) REITs. The regression results also indicate that spreads are lower for equity REITs than for mortgage or hybrid REITs, and are inversely related to the fraction of the REIT's shares held by institutional investors. The similarity between REIT spreads and those of other common stocks holds in both bull and bear real estate markets and suggests that, from a liquidity perspective, REITs are similar to other common stocks.