Title

Cross-Border Investment and Firm Liquidity

Document Type

Article

Language

eng

Publication Date

2016

Publisher

American Real Estate Society

Source Publication

Journal of Real Estate Portfolio Management

Source ISSN

1083-5547

Abstract

We investigate the influence of interjurisdictional, geographic-based information barriers on the financial transparency and liquidity of real estate organizations across the Asia-Pacific region. Given both the unique regulatory distribution requirements across this industry and the capital-intensive nature of most real estate investment activities, firms within this market sector face unique, substantive financing concerns. As a consequence, financial transparency and liquidity are of increased importance to firms within this industry. Consistent with this paradigm, we find strong evidence that Asia-Pacific real estate firms facing enhanced levels of political risk and uncertainty are characterized by higher information barriers, and exhibit reduced financial market liquidity as measured by wider bid-ask spreads.

Comments

Journal of Real Estate Portfolio Management; Boston Vol. 22, No. 2, (2016): 10,106-127. Publisher Link. © 2016 American Real Estate Society.

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