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Risk-Adjusted Performance of Real Estate Stocks: Evidence From Developing Markets

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Author Info
Joseph T.L. Ooi () (Department of Real Estate, National University of Singapore, 4 Architecture Drive, Singapore 117566)
Kim-Hiang Liow () (Department of Real Estate, National University of Singapore, 4 Architecture Drive, Singapore 117566)
Abstract

This paper examines the performance of real estate stocks listed in seven developing markets in East Asia between 1992 and 2002. Using panel regressions, the goal is to identify determinants of the risk-adjusted returns of real estate securities traded in these markets. The empirical evidence suggests that size, book-to-market value, capital structure and market diversification have significant influence on the performance of real estate securities. Asset structure and development exposure, however, do not appear to have any significant effect on the returns behavior, while dividend yield has limited influence. As expected, interest rates and market condition have significant impact on the returns of real estate stocks. The Asian Financial Crisis also has an adverse impact on stocks? performance.

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File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol26n04/03.371_396.pdf
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Publisher Info
Article provided by American Real Estate Society in its journal journal of Real Estate Research.

Volume (Year): 26 (2004)
Issue (Month): 4 ()
Pages: 371-396
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Handle: RePEc:jre:issued:v:26:n:4:2004:p:371-396

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Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
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L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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  3. Ko Wang & John Erickson, 1997. "The Stock Performance of Securitized Real Estate and Master Limited Partnerships," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 25(2), pages 295-319. [Downloadable!] (restricted)
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  5. Lynne B. Sagalyn, 1990. "Real Estate Risk and the Business Cycle: Evidence from Security Markets," Journal of Real Estate Research, American Real Estate Society, vol. 5(2), pages 203-220. [Downloadable!]
  6. Redman, Arnold L & Manakyan, Herman, 1995. "A Multivariate Analysis of REIT Performance by Financial and Real Asset Portfolio Characteristics," The Journal of Real Estate Finance and Economics, Springer, vol. 10(2), pages 169-75, March.
  7. Shaun A. Bond & G. Andrew Karolyi & Anthony B. Sanders, 2003. "International Real Estate Returns: A Multifactor, Multicountry Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 31(3), pages 481-500, 09. [Downloadable!] (restricted)
  8. Brent W. Ambrose & Steven R. Ehrlich & William T. Hughes & Susan M. Wachter, 1998. "REIT Economies of Scale: Fact or Fiction?," Zell/Lurie Center Working Papers 313, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
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  9. Banz, Rolf W., 1981. "The relationship between return and market value of common stocks," Journal of Financial Economics, Elsevier, vol. 9(1), pages 3-18, March. [Downloadable!] (restricted)
  10. K.C. Chan & Patric H. Hendershott & Anthony B. Sanders, 1991. "Risk and Return on Real Estate: Evidence from Equity REITs," NBER Working Papers 3311, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. K.C. Chen & Daniel D. Tzang, 1988. "Interest-Rate Sensitivity of Real Estate Investment Trusts," Journal of Real Estate Research, American Real Estate Society, vol. 3(3), pages 13-22. [Downloadable!]
  12. Jarl G. Kallberg & Crocker H. Liu & Paolo Pasquariello, 2002. "Regime Shifts in Asian Equity and Real Estate Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(2), pages 263-291. [Downloadable!] (restricted)
  13. Bhandari, Laxmi Chand, 1988. " Debt/Equity Ratio and Expected Common Stock Returns: Empirical Evidence," Journal of Finance, American Finance Association, vol. 43(2), pages 507-28, June. [Downloadable!] (restricted)
  14. William F. Sharpe, 1965. "Mutual Fund Performance," Journal of Business, University of Chicago Press, vol. 39, pages 119. [Downloadable!]
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