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Author: Na Li Publisher: Open Dissertation Press ISBN: 9781374670716 Category : Languages : en Pages :
Book Description
This dissertation, "The Informational Content of Indirect Real Estate Options: Evidence From Hong Kong" by Na, Li, 李娜, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of Thesis Titled The Informational Content of Indirect Real Estate Options: Evidence from Hong Kong Submitted by LI Na For the degree of Doctor of Philosophy At The University of Hong Kong in December 2006 There has been ample research on the relationship between the implied volatility of financial options and the realized volatility of the underlying stock. Empirical results on whether or not implied volatility contains information on future realized volatility have been mixed. This study contributes to this area of research by analyzing the informational content of derivative warrants (financial options) of property companies (indirect real estate) in Hong Kong. Previous studies suggested that there is a strong link between the prices of indirect real estate and those of direct real estate. However, there has been no research on the link between the options of indirect real estate and direct real estate. Using a sample of listed companies with a relatively long history of warrants listed on the Hong Kong Stock Exchange, I found that there was no obvious relationship between the implied volatility and the realized volatility of the underlying stock. This is consistent with the results from previous studies. However, with regard to direct real estate, the informational content of implied volatility is different for the two broad categories of indirect real estate, namely investment companies and development companies. Investment companies hold properties for investment purposes. Their major source of revenue is rental income. I found that the implied volatility of the warrant of investment companies contained future information on the volatility of direct real estate. This result is expected, since the financial market is more liquid, and therefore, changes in the economic and political environment (such as interest rate movements and changes in fiscal and economic policies in Hong Kong and Mainland China) that are likely to affect the volatility of rental income will first be reflected in the warrant market. The results are, however, different for development companies. I found that the implied volatility of development companies contains information about the historical volatility of direct real estate. That is, the warrants of property development companies are priced based on historical volatility in the direct real estate market, which is a less liquid market. This apparently counterintuitive result can be explained by property development risk and the uncertainties that developers have to face than pricing presale housing units. The property developer has to bear the development risk in addition to fluctuations in property prices. The sources of development risks come mainly from the uncertainty in obtaining approvals from various government departments. Furthermore, in many cases, there is also uncertainty involved in negotiations with different stakeholders and pressure groups. Development risk may also vary according to the nature and timing of a development project. In essence, development risks are unique, and therefore, historical events have little predictive power. On the other hand, when developers sell their units in the presale market, they often face the problem of setting the right presale price that optimizes total profit. In the price searching process,
Author: Na Li Publisher: Open Dissertation Press ISBN: 9781374670716 Category : Languages : en Pages :
Book Description
This dissertation, "The Informational Content of Indirect Real Estate Options: Evidence From Hong Kong" by Na, Li, 李娜, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of Thesis Titled The Informational Content of Indirect Real Estate Options: Evidence from Hong Kong Submitted by LI Na For the degree of Doctor of Philosophy At The University of Hong Kong in December 2006 There has been ample research on the relationship between the implied volatility of financial options and the realized volatility of the underlying stock. Empirical results on whether or not implied volatility contains information on future realized volatility have been mixed. This study contributes to this area of research by analyzing the informational content of derivative warrants (financial options) of property companies (indirect real estate) in Hong Kong. Previous studies suggested that there is a strong link between the prices of indirect real estate and those of direct real estate. However, there has been no research on the link between the options of indirect real estate and direct real estate. Using a sample of listed companies with a relatively long history of warrants listed on the Hong Kong Stock Exchange, I found that there was no obvious relationship between the implied volatility and the realized volatility of the underlying stock. This is consistent with the results from previous studies. However, with regard to direct real estate, the informational content of implied volatility is different for the two broad categories of indirect real estate, namely investment companies and development companies. Investment companies hold properties for investment purposes. Their major source of revenue is rental income. I found that the implied volatility of the warrant of investment companies contained future information on the volatility of direct real estate. This result is expected, since the financial market is more liquid, and therefore, changes in the economic and political environment (such as interest rate movements and changes in fiscal and economic policies in Hong Kong and Mainland China) that are likely to affect the volatility of rental income will first be reflected in the warrant market. The results are, however, different for development companies. I found that the implied volatility of development companies contains information about the historical volatility of direct real estate. That is, the warrants of property development companies are priced based on historical volatility in the direct real estate market, which is a less liquid market. This apparently counterintuitive result can be explained by property development risk and the uncertainties that developers have to face than pricing presale housing units. The property developer has to bear the development risk in addition to fluctuations in property prices. The sources of development risks come mainly from the uncertainty in obtaining approvals from various government departments. Furthermore, in many cases, there is also uncertainty involved in negotiations with different stakeholders and pressure groups. Development risk may also vary according to the nature and timing of a development project. In essence, development risks are unique, and therefore, historical events have little predictive power. On the other hand, when developers sell their units in the presale market, they often face the problem of setting the right presale price that optimizes total profit. In the price searching process,
Author: Edith Mazier Publisher: Atlantic Publishing Company ISBN: 1601382065 Category : Business & Economics Languages : en Pages : 290
Book Description
It is no secret that investing in real estate can significantly boost one's income. Mane people begin by investing, in single-family residential properties and work their way up to commercial properties such as duplexes, triplexes, and quads. However, moving from one to the other may seem like a big leap. This book will make the transition effortless, as it explains everything you need to know in easy-to-understand language and points out dozens of hints and suggestions. By reading this extensively-researched book, you will become knowledgeable in all areas of commercial real estate investing, including cash flow, appreciation, tax benefits, equity build-up and leveraging, due diligence, gross rental income, vacancy loss, operating expenses, debt service, zoning, triple net leases and contracts. You also will learn about the potential gains and losses, the consequences, loans, proven techniques, effective strategies, advantages and disadvantages of direct and indirect investing, and asset management techniques. Whether you are a new investor looking to get started or a seasoned veteran looking to enhance your portfolio, this guide provides you with all the information you need to accomplish your investment goals.
Author: Erin Lowry Publisher: Penguin ISBN: 0525505431 Category : Business & Economics Languages : en Pages : 256
Book Description
A guide to investing basics by the author of Broke Millennial, for anyone who feels like they aren't ready (or rich enough) to get into the market Millennials want to learn how to start investing. The problem is that most have no idea where to begin. There's a significant lack of information out there catering to the concerns of new millennial investors, such as: * Should I invest while paying down student loans? * How do I invest in a socially responsible way? * What about robo-advisors and apps--are any of them any good? * Where can I look online for investment advice? In this second book in the Broke Millennial series, Erin Lowry answers those questions and delivers all of the investment basics in one easy-to-digest package. Tackling topics ranging from common terminology to how to handle your anxiety to retirement savings and even how to actually buy and sell a stock, this hands-on guide will help any investment newbie become a confident player in the market on their way to building wealth.
Author: Kim Hin David HO Publisher: Partridge Publishing Singapore ISBN: 1543764096 Category : Business & Economics Languages : en Pages : 858
Book Description
This book is dedicated to real estate scholastic work, in advancing the greater understanding of real estate investment analysis. This is because there has been limited research in bringing out clearly the uncertainty or risk, which is quantifiable uncertainty in real estate market analysis. Even real estate market research, which is carried out as an industry practice among private real estate researches, is no exception. Another reason is that it has been widely accepted that while the financial revolution has substantially changed many sectors of the financial industry, it has made little impact on real estate development and investment practice as Ill as scholastic work. Furthermore, while it is readily acknowledged that despite its huge share in the world Ialth, real estate investment discipline and research is on the whole still a poorly researched subject area. As a result, the industry tends to be dominated by traditional real estate analysts with little understanding of real estate market uncertainty and capital markets. These commentators are widely regarded to spend too much time worrying about local space supply and demand conditions, while totally losing sight of the everchanging real estate market and capital market conditions. The theme of this book is real estate investment analysis of direct and indirect real, which in turn can be appropriately managed under economic theory and the theoretical conceptions of real estate finance, provided the uncertainty is quantifiable. The book deploys case studies involving Singapore and Asia. This Black over White background viii framework enables real estate market analysis to attempt what defines the Asian direct and indirect real estate sectors; what is being measured; how it behaves (in terms of price and non-price factors); how it is structured and how it effectively achieves the objectives of sustainable total returns and manageable real estate market uncertainty. Managing real estate market uncertainty optimally is achieved at the portfolio level through real estate asset allocation. This is important because the real estate portfolio is able to virtually eliminate the unique (i.e. specific) uncertainties among the various Asian real estate sectors; thus retaining within the portfolio only the systemic (i.e. market-wide) uncertainty. Apart from real estate asset allocation, the alternative and modern approach to risk management at the portfolio level, is the value-at-risk (VaR) approach. Another modern and important alternative to coping with uncertainty is real option analysis and pricing that help to better define real estate market uncertainty in extent and time. Real option analysis and pricing also represent uncertainty via a decision tree and the risk-neutral probability conception, in order to comprehend how uncertainty impacts on the value of real estate investment decisions. The pricing of uncertainty is based on the risk-free hedge security conception. These are best examined at the micro level of the investment in a real estate development opportunity on vacant land. Nevertheless, the real estate sectors in Singapore and Asia offer promising prospects since the Asian currency crisis of 1997. It is now timely to take stock and make an assessment of how the sectors would pan out for the future, Ill into at least rest the next century. I are very pleased to present our thinking and research in international real estate with particular emphasis on Asia. The region’s vast potential for real estate is itself a large incentive for international real estate research and education that has inspired me to document the significant work I have done over the years. Black over White background ix I wish all readers a pleasurable reading of this book, and I thank you sincerely for your support without which the publication of this book would be made all the more difficult. Dr HO, Kim Hin / David Honorary Professor (University of Hertfordshire, UK) (International Real Estate & Public Policy) March 2021.
Author: Erin Lowry Publisher: Penguin ISBN: 0143130404 Category : Business & Economics Languages : en Pages : 289
Book Description
WASHINGTON POST “COLOR OF MONEY” BOOK CLUB PICK Stop Living Paycheck to Paycheck and Get Your Financial Life Together (#GYFLT)! If you’re a cash-strapped 20- or 30-something, it’s easy to get freaked out by finances. But you’re not doomed to spend your life drowning in debt or mystified by money. It’s time to stop scraping by and take control of your money and your life with this savvy and smart guide. Broke Millennial shows step-by-step how to go from flat-broke to financial badass. Unlike most personal finance books out there, it doesn’t just cover boring stuff like credit card debt, investing, and dealing with the dreaded “B” word (budgeting). Financial expert Erin Lowry goes beyond the basics to tackle tricky money matters and situations most of us face #IRL, including: - Understanding your relationship with moolah: do you treat it like a Tinder date or marriage material? - Managing student loans without having a full-on panic attack - What to do when you’re out with your crew and can’t afford to split the bill evenly - How to get “financially naked” with your partner and find out his or her “number” (debt number, of course) . . . and much more. Packed with refreshingly simple advice and hilarious true stories, Broke Millennial is the essential roadmap every financially clueless millennial needs to become a money master. So what are you waiting for? Let’s #GYFLT!
Author: Arthur L. Schwartz Jr. Publisher: Springer ISBN: 9789400903685 Category : Business & Economics Languages : en Pages : 224
Book Description
Arthur L. Schwartz, Jr. and Steven D. Kapplin The focus of this volume of the ARES Monograph Series is new ideas in real estate investment. Within this volume, empiricial studies, literature reviews, and tutorials examine a broad range of important investment issues. Many new and innovative ideas are presented. This volume should be a rich source of real estate investment ideas for many years to come. Kapplin and Schwartz examine the returns of two types of REITs, as well as that of Master Limited Partnerships (MLP), over the 1987-1989 time period. Their sample consisted of 54 real estate securities; they conclude that these entities did not provide an effective inflation hedge. MLP returns exceeded that of the overall stock market, but the two REIT types did not provide rates-of-return in excess of the marked. An extensive review of the commercial real estate return literature is presented by Fletcher. He focuses upon studies that utilize commingled real estate fund (CREF) data. His detailed overview of the subject provides a much needed synthesis of the current literature. Roulac presents an extensive discussion of the differences in the per spectives of individual versus institutional investors. In his essay, he considers such factors as scale, diversification, and related issues. Addi tionally, he examines a wide range of literature from within academia, 1 INTRODUCTION 2 as well as the opinions of various real estate gurus. He concludes that behavioral factors override economic considerations.
Author: Na Li
Author: Na Li
Author: Na Li (Ph. D.)
Author: Edith Mazier
Author: Erin Lowry
Author: Kim Hin David HO
Author: 
Author: IBP USA
Author: Erin Lowry
Author: David W. Walters
Author: Arthur L. Schwartz Jr.