Using panel data of 24 firms in the Indonesian property and real estate sector from 2019 to 2023, this study investigates the impact of related party transactions on firm value by emphasizing the influence of firm size and family ownership. Tobin's Q was used in the analyses to measure firm value, with leverage, profitability, and liquidity as control variables. Empirical evidence demonstrates that related party receivables have a significant negative effect on firm value, thus confirming the agency theory. Related party payables, on the other hand, have a positive correlation with firm value, showing the potential as an internal financing mechanism and giving a good signal to the market. Furthermore, firm size has been shown to mitigate the adverse impacts of accounts receivable while magnifying the beneficial effects of accounts payable. Although family-owned businesses extract greater value from accounts payable than non-family-owned enterprises, there is no distinction in accounts receivable between the two. Nonetheless, this study shows that related party transactions are not necessarily harmful for companies. These findings are important for business management, regulators, and investors seeking to consider related party transactions that can increase firm value.
Nicholas Fiorentini, Matteo Moriani, Massimo Rovai
Urban transformations require balancing private real estate interests with the provision of public spaces that enhance sustainability and ecosystem services. This study proposes a probabilistic model to assess the feasibility of transforming buildable areas while ensuring equitable benefits for both private developers and public administrations, with a focus on three areas to be regenerated within the Municipality of Lucca as case studies. Applying the Monte Carlo (MC) method, two probabilistic models—one with a Uniform distribution and the other with a Normal distribution—estimate the expected Transformation Value (TV) and its associated uncertainty. Results highlight the effectiveness of MC-based assessments in managing financial uncertainty, aiding developers in risk evaluation, and supporting policymakers in designing balanced urban planning indices. It was observed that the Uniform model is better suited to situations in which the initial values of the model’s main variables—such as construction costs, post-transformation market value, or transformation duration—are not fully known, whereas the Normal model provides more accurate estimates when the investment scenario is better understood. The results demonstrate that this approach provides, on the one hand, a robust tool for investment risk analysis to private investors and, on the other hand, a way for public institutions to verify whether urban planning indices enable private promoters to contribute effectively to the development of sustainable cities.
Marta Dell’Ovo, Marco Rossitti, Francesca Torrieri
et al.
Regional Law 19/2019 introduced new tools for Negotiated Planning (NP) in Lombardy, aimed at facilitating collaboration between public and private entities. This law introduces various instruments for coordinating public and private entities, such as the Framework Agreement for Territorial Development (Accordo Quadro di Sviluppo Territoriale - AQST), the Program Agreement (Accordo di Programma - AdP), the Simplified Local Agreement (Accordo Locale Semplificato - ALS) and the Agreement for Economic, Social, and Territorial Revitalization (Accordo di Rilancio Economico, Sociale e Territoriale - AREST). However, the assessment of regional interest and performance monitoring of NP proposals remain problematic due to the lack of transparent and replicable indicators. This research paper presents a multidimensional evaluation model, which introduces innovative criteria and indicators to evaluate NP proposals. With the support of multicriteria analysis as a reference evaluation methodology, the model relies on binary indicators to assess the programmatic, planning, territorial, environmental, social, economic-financial, employment and procedural coherence of the proposals. The application of the model to real case studies also makes it possible to test its effectiveness and improve the monitoring of NP instruments. The proposed model thus aims at improving the management and effectiveness of the NP instruments, offering a robust and replicable method for evaluation and monitoring.
This paper presents the concept and methodology for assessing the market potential of local convenience shops in spatial terms. The methods concerned are based on spatial analyses using information derived from open data concerning local population density and competing establishments. The study focused on four main stages, including the estimation of shop density, population density, the compilation of a market potential map, and data reclassification to identify the potential for the location of new shops. The area under study comprised three cities: Łódź, Poznań, and Wrocław. The results of the study suggest that a high market potential does not concern the most populated areas but less populated ones, which is mainly due to much less competition. It was also indicated that the study may serve an important role in terms of sustainable urban development and an improvement in the inhabitants’ quality of life.
China's 14th Five-Year Plan clearly put forward the "no speculation on housing" to promote the steady and healthy development of the real estate market. In this context, this paper uses monthly data on monetary policy, real estate investment, and real estate prices from 2012 to 2019 as samples, and uses a VAR model to explore the linkage between the three. The study found that: (1) Loose monetary policy will bring positive impact effects on both real estate investment and prices, and real estate prices are more sensitive to changes in monetary policy. (2) The increase in real estate investment will first have a positive impact effect on real estate prices, but it will become a negative effect after a period of time. (3) The increase in the real estate price will bring a positive impact effect on the money supply and cause an increase in the money supply. The findings are helpful to clarify the mutual influence between the three variables, grasp the law of economic activities, and provide references and suggestions for policymakers to effectively regulate the real estate market and the public investors to rationally participate in real estate investment.
Rezky Pramurindra, Wita Ramadhanti, Eliada Herwiyanti
et al.
Kebijakan dan operasional suatu perusahaan menjadi hal yang sangat penting bagi kelangsungan suatu perusahaan. Sudah bukan rahasia lagi bahwa manajer suatu perusahaan biasanya adalah orang-orang yang masih mempunyai hubungan keluarga dengan pemilik perusahaan. Tentu keputusan ini bukan semata masalah kepercayaan antara pemilik terhadap keluarganya, tetapi juga karena perspektif keluarga yang memandang perusahaan sebagai aset keluarga yang harus diteruskan kepada generasi berikutnya. Oleh karena itu, unsur keluarga bisa berpengaruh baik secara langsung maupun tidak langsung terhadap kebijakan dan operasional perusahaan. Penelitian ini bertujuan untuk mengetahui pengaruh family ownership terhadap kinerja perusahaan melalui corporate social responsibility. Populasi dalam penelitian ini adalah seluruh perusahaan industri sektor infrastruktur, utilitas dan transportasi serta industri properti, real estate dan konstruksi bangunan yang terdaftar di Bursa Efek Indonesia periode tahun 2018. Penggunaan teknik purposive sampling menghasilkan 65 family business yang digunakan sebagai sampel dalam penelitian ini. Hasil analisis data dengan menggunakan Partial Least Square (PLS) 3.0 menunjukkan bahwa: (1) Family ownership berpengaruh positif dan signifikan terhadap kinerja perusahaan; (2) Family Ownership berpengaruh positif dan signifikan terhadap corporate social responsibility; (3) Corporate social responsibility memediasi pengaruh family ownership terhadap kinerja perusahaan keluarga. Hasil penelitian memberikan alternatif struktur kepemilikan bagi perusahaan untuk menghadapi tantangan revolusi industri 4.0 dan rekomendasi bagi family business dalam menganalisis komponen-komponen yang dapat mempengaruhi kinerja perusahaan.
Abstract The COVID-19 pandemic has led to a current global health crisis with dreadful repercussions all over the world. A global economic recession is anticipated, with strong impacts in all economic and social sectors, including the cultural sector. Although all sub sectors will be impacted (heritage sites, theatres, museums, operas, art galleries), the cultural built heritage is particularly at stake, as it relies on multiple stakeholders through a wide range of heritage-related activities (tourism, recreation, housing, real estate, construction, craftsmanship, etc.). Sites management and heritage conservation have not only been vulnerable to strong economic and social disruptions, like most of other cultural fields, but have been greatly challenged because heritage values and the paradigm of conservation (50 years after adoption of the UNESCO convention) are being themselves revisited in the perspective of the Sustainable Development Goals. The paper aims also to consider cultural heritage as part of the Cultural and Creative Sectors (CCS) and how creativity and innovation contribute to post-COVID recoveries through Schumpeter-related creative destruction process. The current crisis might be perceived in a perspective of long wave theory of innovations and economic growth. The economic history is filled with many examples of such transition period when inventions, innovations, and growth reactivate the economic development in an upward long-term trend. In such framework, crisis can trigger innovation and creativity and can be understood as opportunity to increase the CCS resilience and sustainability, as well as harness the universality and the power of creativity. Finally, the paper aims to describe implications of such situation by providing to the CCS ways to learn and experience cultural entrepreneurship, resilient strategies, new sustainable and circular business models applied to the cultural heritage sector and its conservation.
PurposeThis paper addresses decision-making for commercial real estate (CRE) firms and professionals within the context of rapid technological innovations capable of business model disruption. It considers the paradoxical notion of the need for CRE firms to become ambidextrous by simultaneously exploiting their existing business model and exploring possible opportunities and threats. The paper develops a practical approach, the paradox map, for dealing with this paradoxical problem.Design/methodology/approachThis qualitative research draws on work from organizational management, leadership, social sciences and technology. This research frames the definition and development of an ambidextrous mindset and its components. Paradox management is explored as a possible source of useful tools.FindingsThe ambidextrous mindset is a paradox in that exploit and explore are ongoing interrelated opposing forces. Further, the mindset is the product of a number of sub-paradoxes that act as levers for its development and adjustment. The paradox map is developed to facilitate dealing with numerous paradoxes.Practical implicationsThe paradox map is a useful tool for commercial real-estate firms to understand and develop an ambidextrous mindset.Originality/valueCommercial real estate is experiencing a wave of substantive technological disruption in the proptech marketplace and beyond. This paper attempts to clarify the paradox of innovation and its underlying sub-paradoxes to help professionals navigate the interrelated landscape of exploiting past products and exploring innovations.
This paper explores the question of whether real estate development projects systematically present positive net present value (NPV) and therefore, provide super-normal profit. Such projects are the products of a business operation that governs the exercise of the real call option on development that is represented by developable land. We find that super-normal profits do tend to exist in the investment property development projects produced by publicly-traded equity real estate investment trusts (REITs). Specifically, we find that, over the 1998-2018 period, REITs' Tobin's-Q ratios increase significantly as a function of the ratio of development assets to total assets in the firm, controlling for other factors. This added value is net of land cost and is at the firm level, therefore also net of overhead and search costs associated with the real estate development business operation. Our findings suggest either that the commercial real estate development industry tends to be broadly characterized by super-normal profits, or that there is a beneficial capital allocational efficiency effect of the stock market in attracting, supporting or cultivating firms that are particularly successful at real estate development of investment properties.
PurposeThe purpose of this paper is to examine the influence of corporate real estate (CRE) holdings on firm performance. Unlike previous studies, the paper does not only consider the firms’ primary business segment but also their activities in different business fields. This is of particular interest because additional segments often have different requirements for the provision of space and thus for the ownership strategy, which could have led to a possible bias in previous studies. Furthermore, additional business areas are becoming more relevant through integrated solutions.Design/methodology/approachThe study uses a balance sheet data set of companies in the six largest European economies for the period from 2000 to 2016. Germany serves as a suitable laboratory for deeper analyses. Holdings of 490 firms are regressed to the stock market performance using a two-stage approach. This procedure is repeated by considering additional business segments.FindingsThe analyses reveal that ownership reduces stock market performance. Additional business activities also appear to influence the relevance of ownership for firm performance.Practical implicationsThe research shows that ownership is priced depending on its primary and additional business activities. First, this insight helps capital market players to choose the right investment strategy. Second, it provides CRE decision-makers with information on the optimal provision of real estate.Originality/valueThis is the first paper to examine the contribution of real estate ownership on firm performance in light of the fact that companies operate in more than one sector.
The city of Georgetown, Malaysia was listed as a World Heritage Site by the United Nations Educational, Scientific and Cultural Organisation (UNESCO) in 2008 due to the diverse cultural and tourism activities. The listing has brought about an impact to the heritage properties in Malaysia. Since then, the volume of business activities has increased dramatically with a positive demand for heritage properties. This scenario has increased competition in commercial activities and business owners have struggled to offer their best products to tourists, both local and foreign. However, while investors and traders thrive to locate their businesses in heritage properties, some restrictions and externalities have influenced their activities. Among the significant factors that have influenced such activities, there is the Special Area Plan which restricts renovations and conservations, building condition and building price. Therefore, the purpose of this paper is to assess the sustainability of businesses located in the heritage properties. Eighteen criteria (factors) are identified and assessed to determine the best sustainable areas in the city and the Complex Proportional Analysis (COPRAS) is utilised as the best method to assess the issue .The findings show that each alternative has its unique characteristics that support the sustainability of businesses that occupy the heritage properties. This is the first paper of its kind to assess the sustainability of business activities that are occupying the heritage properties in Malaysia.
User data has been used by many companies to understand user behaviors and finding new business strategies. However, common techniques cannot be used when it comes to new products that have not yet been released due to the fact that there are no prior data available. In this work, we propose a framework for generating realistic user data on new products which can then be analyzed for insights. Our model uses Conditional Generative Adversarial Network (CGAN) with the Straight-Through Gumbel estimator which can also handle discrete-valued outputs. The CGAN is conditioned on product features learned using a recommendation system which can better capture the relationship between products. Experiments using a dataset consisting of view logs from a real estate listing website shows that our model outperforms other baselines on four performance metrics, and can effectively predict the finer characteristics of new products.
Purpose A paradigm in circular economy (CE) is that suppliers retain ownership of their products and materials, and that the users “only” pay for services. In many legal systems, however, elements incorporated in a building are considered to be fixtures, and therefore legally part of the building. This means that ensuring multi-cyclic behaviour of individual building elements (e.g. the facade or a window) is not so evident. This paper explores, from the perspective of Dutch law, how to secure the ownership of the supplier or to find alternatives within the existing system of property law. Design/methodology/approach The authors performed a literature review of both CE and (Dutch) property law. The results of these reviews are discussed and illustrated by legal case studies. Findings The options principally advocated within CE to retain ownership of building parts leave legal uncertainties and do not offer a solid basis for the development of circular business models, especially considering immovables and fixtures. For these categories, buy-back and take-back contracts, and models for reuse and recycling seem more promising. Research limitations/implications The research is limited to a literature review. Although the legal principles discussed in this paper are valid for both civil and common law systems, and similar findings might, therefore, be expected internationally, this study focused on the specific Dutch legal context. Comparative legal research and research of best practices in the building industry is needed to test the applicability of the findings in an international context. Practical implications Following the findings, CE initiatives within real estate and the construction industry should focus on alternative implementations of the operational lease concept, taking into account CE’s ambitions to reduce the extraction of raw materials. Originality/value At the moment the challenges that property law poses CE, real estate and operational lease are hardly discussed within the literature. This paper explores this gap.
Mario Bodenbender, Björn-Martin Kurzrock, Philipp Maximilian Müller
Real estate represents a major share of economic activities and wealth in all economies. Due to the lack of widely acknowledged standards, however, the structuring, providing and managing of a life cycle-comprehensive building documentation yet remain challenging. Based on the empirical analysis of 8965 digital documents from 14 properties of 8 different owners, the article presents a model that will unify existing approaches and lead to the development of a document classification standard. This provides the basis for software systems to process relevant data and create timely information over the entire life cycle of a building. Further, it is shown that automated information extraction through artificial intelligence will become instrumental for enhanced and innovative business models and products in real estate such as automated data validation and data evaluation, documentation review, benchmarking and other analytical applications.
The present text focuses on perceiving real estate property as an investment asset that generates a certain amount of revenue to its owner, assuming expected risk and the expected level of liquidity. The first step is to determine the open market value of the selected property, which represent the expected expenses of the investment costs incurred (taking into account other acquisition costs), then we determine the open market rent value, which is the expected return on the selected property, then identify possible business risk associated with the commercial use of real estate and finally, the liquidity of the entire investment is estimated. In conclusion, methods for evaluating investments are applied to assess the realization of the investment – acquisition of the selected real estate for commercial purposes, the estimated return time and the percentage of the return on investment is calculated of the paper.
Arizona State University's MRED is one of the leading programs offered through the nationally ranked and recognized W. P. Carey School of Business, in partnership with Sandra Day O'Connor College of Law, the Herberger Institute for Design and the Arts and the Del E. Webb School of Construction. The program offers a true transdisciplinary approach to real estate development education through a full-immersion curriculum that explores the development process in its entirety.