IDEAS home Printed from https://ideas.repec.org/a/aud/audfin/v17y2019i154p306.html
   My bibliography  Save this article

Transparency of Real Estate Markets: Conceptual and Empirical Evidence

Author

Listed:
  • Elena IONASCU

    (“Alexandru Ioan Cuza” University of Ia?i, Romania)

  • Marilena MIRONIUC

    (“Alexandru Ioan Cuza” University of Ia?i, Romania)

  • Ion ANGHEL

    (The Bucharest University of Economic Studies,Romania)

Abstract

The expansion of international real estate investment has also created the need for more transparency on real estate markets. In this context, the paper aims at identifying the dimensions and trends of the transparency of real estate markets in 31 states, mostly European, in correlation with their economic development. Applying the Principal Component Analysis (PCA), t-Student test and regression analysis highlighted the strong and significant associations of transparency quantified by the Global Real Estate Transparency Index with the institutional environment, macroeconomic factors, technology, innovation and the social environment. The results of the research show that the most competitive and robust countries have the most transparent and mature real estate markets. Technology, innovation, infrastructure quality and expanded business networks imply new trends in transparency in developed countries. In emerging and developing countries, the quality of governance and lack of corruption are prerequisites for transparency in real estate markets.

Suggested Citation

  • Elena IONASCU & Marilena MIRONIUC & Ion ANGHEL, 2019. "Transparency of Real Estate Markets: Conceptual and Empirical Evidence," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(154), pages 306-306.
    • Handle: RePEc:aud:audfin:v:17:y:2019:i:154:p:306
    as

    Download full text from publisher

    File URL: http://revista.cafr.ro/temp/Article_9613.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brunetti, Aymo & Weder, Beatrice, 2003. "A free press is bad news for corruption," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1801-1824, August.
    2. Christopher Hood, 2007. "What happens when transparency meets blame-avoidance?," Public Management Review, Taylor & Francis Journals, vol. 9(2), pages 191-210, June.
    3. Gary Gorton, 2008. "The panic of 2007," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 131-262.
    4. Lieser, Karsten, 2011. "The Attractiveness of countries for international real estate investments : the global real estate investment attractiveness index," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 56560, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer & Robert Vishny, 2002. "Investor Protection and Corporate Valuation," Journal of Finance, American Finance Association, vol. 57(3), pages 1147-1170, June.
    6. Geoffrey Keogh & Eamonn D'Arcy, 1999. "Property Market Efficiency: An Institutional Economics Perspective," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2401-2414, December.
    7. Arnott, Richard, 1987. "Economic theory and housing," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 24, pages 959-988, Elsevier.
    8. Nijhof, A. & Graafland, J.J. & Kuijer de, O., 2009. "Exploration of an agenda for transparency in the construction industry," MPRA Paper 20274, University Library of Munich, Germany.
    9. Roumeen Islam, 2006. "Does More Transparency Go Along With Better Governance?," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 121-167, July.
    10. Daniela MARINESCU & Dumitru MARIN, 2011. "Adverse Selection Models with Three States of Nature," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(555)), pages 33-46, February.
    11. Edwin Buitelaar, 2004. "A Transaction-cost Analysis of the Land Development Process," Urban Studies, Urban Studies Journal Limited, vol. 41(13), pages 2539-2553, December.
    12. Stephen Lee, 2005. "Gauging the Investment Potential of International Real Estate Markets," ERES eres2005_238, European Real Estate Society (ERES).
    13. Musharraf Rasool Cyan & Jorge Martinez-Vazquez & Violeta Vulovic, 2014. "New approaches to measuring tax effort," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 2, pages 27-68, Edward Elgar Publishing.
    14. Carlos Rodríguez & Ricardo Bustillo, 2010. "Modelling Foreign Real Estate Investment: The Spanish Case," The Journal of Real Estate Finance and Economics, Springer, vol. 41(3), pages 354-367, October.
    15. Gary Gorton, 2008. "The panic of 2007," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 131-262.
    16. Graeme Newell, 2016. "The changing real estate market transparency in the European real estate markets," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 34(4), pages 407-420, July.
    17. Bala Ramasamy & Matthew Yeung, 2010. "The Determinants of Foreign Direct Investment in Services," The World Economy, Wiley Blackwell, vol. 33(4), pages 573-596, April.
    18. Triantafyllopoulos, N., 2006. "Public Sector Transparency and Tourism Real Estate Investments in Greece," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(2).
    19. Karsten Lieser & Alexander Groh, 2011. "The Attractiveness of 66 Countries for Institutional Real Estate Investments," Post-Print hal-02312819, HAL.
    20. Elisa Baraibar‐Diez & María D. Odriozola & José Luis Fernández Sánchez, 2017. "A Survey of Transparency: An Intrinsic Aspect of Business Strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 480-489, May.
    21. Richard M. Bird & Jorge Martinez-Vazquez (ed.), 2014. "Taxation and Development: The Weakest Link?," Books, Edward Elgar Publishing, number 15750.
    22. Eamonn D’Arcy & Paloma Taltavull de La Paz, 2009. "Real Estate Education in Europe: Some Perspectives on a Decade of Rapid Change," ERES eres2009_395, European Real Estate Society (ERES).
    23. Snehal Banerjee & Jesse Davis & Naveen Gondhi, 2018. "When Transparency Improves, Must Prices Reflect Fundamentals Better?," Review of Financial Studies, Society for Financial Studies, vol. 31(6), pages 2377-2414.
    24. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    25. Williams, Andrew, 2009. "On the release of information by governments: Causes and consequences," Journal of Development Economics, Elsevier, vol. 89(1), pages 124-138, May.
    26. Mark J. Garmaise, 2004. "Confronting Information Asymmetries: Evidence from Real Estate Markets," Review of Financial Studies, Society for Financial Studies, vol. 17(2), pages 405-437.
    27. Quan, Daniel C & Quigley, John M, 1991. "Price Formation and the Appraisal Function in Real Estate Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 4(2), pages 127-146, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ionaşcu Elena & Anghel Ion, 2020. "Improvement of the real estate transparency through digitalisation," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 371-384, July.
    2. Gholipour, Hassan F. & Arjomandi, Amir & Andargoli, Amirhossein Eslami & Bennett, Rohan, 2023. "On real estate market transparency: The relationship with ICT trade and investment," Land Use Policy, Elsevier, vol. 133(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karsten Lieser & Alexander Groh, 2014. "The Determinants of International Commercial Real Estate Investment," The Journal of Real Estate Finance and Economics, Springer, vol. 48(4), pages 611-659, May.
    2. Helmut Gründl & Thomas Post, 2009. "Transparency through Financial Claims with Fingerprints – A Free Market Mechanism for Preventing Mortgage Securitization Induced Financial Crises," SFB 649 Discussion Papers SFB649DP2009-018, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    3. Giampaolo Gabbi & Alesia Kalbaska & Alessandro Vercelli, 2014. "Factors generating and transmitting the financial crisis: The role of incentives: securitization and contagion," Working papers wpaper56, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    4. Veronica Guerrieri & Robert Shimer, 2014. "Dynamic Adverse Selection: A Theory of Illiquidity, Fire Sales, and Flight to Quality," American Economic Review, American Economic Association, vol. 104(7), pages 1875-1908, July.
    5. Douglas J. Elliott & Greg Feldberg & Andreas Lehnert, 2013. "The History of Cyclical Macroprudential Policy in the United States," Working Papers 13-08, Office of Financial Research, US Department of the Treasury.
    6. Benjamin Lester, 2013. "Breaking the ice: government interventions in frozen markets," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 19-25.
    7. Graeme Newell, 2021. "Future research opportunities for Asian real estate," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 25(2), pages 272-290, April.
    8. Bertsch, Christoph, 2013. "A detrimental feedback loop: deleveraging and adverse selection," Working Paper Series 277, Sveriges Riksbank (Central Bank of Sweden).
    9. Wang, Zijian, 2020. "Liquidity and private information in asset markets: To signal or not to signal," Journal of Economic Theory, Elsevier, vol. 190(C).
    10. Mark D. Flood & Jonathan Katz & Stephen J. Ong & Adam Smith, 2013. "Cryptography and the economics of supervisory information: balancing transparency and confidentiality," Working Papers (Old Series) 1312, Federal Reserve Bank of Cleveland.
    11. Roberto Robatto, 2015. "Financial Crises and Systemic Bank Runs in a Dynamic Model of Banking," 2015 Meeting Papers 483, Society for Economic Dynamics.
    12. Andrew Williams, 2014. "The effect of transparency on output volatility," Economics of Governance, Springer, vol. 15(2), pages 101-129, May.
    13. Michiel Bijlsma & Wim Suyker, 2008. "The credit crisis and the Dutch economy... in eight frequently asked questions," CPB Memorandum 210.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Michiel Bijlsma & Jeroen Klomp & Sijmen Duineveld, 2010. "Systemic risk in the financial sector; a review and synthesis," CPB Document 210.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Briana Chang, 2012. "Adverse Selection and Liquidity Distortion in Decentralized Markets," 2012 Meeting Papers 403, Society for Economic Dynamics.
    16. Geginat, Carolin & Saltane, Valentina, 2014. "Transparent government and business regulation :"open for business?"," Policy Research Working Paper Series 7132, The World Bank.
    17. Islam,Asif Mohammed & Lederman,Daniel, 2020. "Data Transparency and Long-Run Growth," Policy Research Working Paper Series 9493, The World Bank.
    18. Gregory Connor & Lisa R. Goldberg & Robert A. Korajczyk, 2010. "Portfolio Risk Analysis," Economics Books, Princeton University Press, edition 1, number 9224.
    19. Yaron Leitner, 2011. "Why do markets freeze?," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 12-19.
    20. Lisi, Gaetano & Iacobini, Mauro, 2012. "Estimation of a Hedonic House Price Model with Bargaining: Evidence from the Italian Housing Market," MPRA Paper 66474, University Library of Munich, Germany.

    More about this item

    Keywords

    transparency; Global Real Estate Transparency Index; real estate markets; Europe; competitiveness; corruption;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aud:audfin:v:17:y:2019:i:154:p:306. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dumitru Valentin Florentin (email available below). General contact details of provider: http://revista.cafr.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.