Estimating financial information asymmetry in real estate transactions in China - An application of two-tier frontier model

2022 ◽  
Vol 59 (2) ◽  
pp. 102860
Author(s):  
Ganlin Pu ◽  
Ying Zhang ◽  
Li-Chen Chou
Keyword(s):  
Real Estate ◽  
Information Asymmetry ◽  
Financial Information

scholarly journals Financial Information Asymmetry: Using Deep Learning Algorithms to Predict Financial Distress

Symmetry ◽  
2021 ◽  
Vol 13 (3) ◽  
pp. 443
Author(s):  
Chyan-long Jan
Keyword(s):  
Neural Networks ◽  
Deep Learning ◽  
Information Asymmetry ◽  
Error Rate ◽  
Financial Distress ◽  
Prediction Models ◽  
High Accuracy ◽  
Financial Information ◽  
Financial Distress Prediction ◽  
Distress Prediction

Because of the financial information asymmetry, the stakeholders usually do not know a company’s real financial condition until financial distress occurs. Financial distress not only influences a company’s operational sustainability and damages the rights and interests of its stakeholders, it may also harm the national economy and society; hence, it is very important to build high-accuracy financial distress prediction models. The purpose of this study is to build high-accuracy and effective financial distress prediction models by two representative deep learning algorithms: Deep neural networks (DNN) and convolutional neural networks (CNN). In addition, important variables are selected by the chi-squared automatic interaction detector (CHAID). In this study, the data of Taiwan’s listed and OTC sample companies are taken from the Taiwan Economic Journal (TEJ) database during the period from 2000 to 2019, including 86 companies in financial distress and 258 not in financial distress, for a total of 344 companies. According to the empirical results, with the important variables selected by CHAID and modeling by CNN, the CHAID-CNN model has the highest financial distress prediction accuracy rate of 94.23%, and the lowest type I error rate and type II error rate, which are 0.96% and 4.81%, respectively.

scholarly journals EARNING MANAGEMENT MODELING BASED ON FINANCIAL COMMUNICATION

2018 ◽  
Vol 6 (10) ◽  
pp. 274-279
Author(s):  
Mojtaba Mortezaee
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Financial Information ◽  
Earning Management ◽  
Web Based ◽  
Management Incentives ◽  
Financial Communication ◽  
The Relationship ◽  
Financial Communications

The present research is focused on financial communication area and aim to investigate the relationship between company’s web-based financial communications, information asymmetry and earning management. The research is aim to examine whether financial communication besides its usefulness could be act as contributory means for management in order to earning management. In other words, aim to challenges management incentives toward web-based financial information disclosure.

PENGGUNAAN ]NFORMASI AKUNTANSI UNTUK MEMPREDIKSI RETURN SAHAM PADA PERUSAHAAN REAL ESTAT DAN PROPERTT YANG TERDAFTAR DI BURSA EFEK JAKARTA

2007 ◽  
Vol 3 (1) ◽  
pp. 47
Author(s):  
Felicia P. Bahari ◽  
Wirawan E.D. Radianto
Keyword(s):  
Real Estate ◽  
Financial Reporting ◽  
Stock Return ◽  
Financial Information ◽  
Ratio Analysis ◽  
Financial Ratio ◽  
Turnover Ratio ◽  
Financial Condition ◽  
One Year

The role of Jinancial ratio analysis is to investigate whether finorcial information is useful to predict stock return and corporate financial condition in the future.This study examines the use of financial ratio to predict stock return for one and two years ahead. This study is bosed on research by fuasikal (2002) and use listed real estate industies in 1999 as sample. CAR is used as proxy of stock return and window periode is used seven day before ond after financial reporting publication for 2000 and 2001. Financial reporting is taken from ICMD for 2001. Using multiple regressin, the outcome fum this research, price tobook value influence positively to predict stock return for two years ahead. While account receivable turnover ratio significantly can predict stock return foir one year ahead.Keywords: Financial information, stock return, financiol ratio, realestate and property.

Neighborhood Watch: The Rise of Zillow

2017 ◽  
pp. 1-7
Author(s):  
Russell Walker
Keyword(s):  
Real Estate ◽  
Information Asymmetry ◽  
Housing Market ◽  
Real Estate Industry ◽  
Neighborhood Watch ◽  
Agent Model ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Agent ◽  
Principal Agent Problem

Read any news report on the housing market, and inevitably it will include facts or figures from the real estate data giant Zillow.com. The company initially set out to solve two key economic frictions in the real estate industry information asymmetry and the principal-agent problem by empowering users to access real-time housing data and eliminating the need for realtors. The company soon realized, however, that American homeowners and buyers were not willing to give up the traditional real estate agent model and changed course. In the end, Zillow decided to join rather than replace the middlemen in the real estate industry.

Intermediation in Private Equity: The Role of Placement Agents

2019 ◽  
Vol 55 (4) ◽  
pp. 1095-1116
Author(s):  
Matthew D. Cain ◽  
Stephen B. McKeon ◽  
Steven Davidoff Solomon
Keyword(s):  
Real Estate ◽  
Information Asymmetry ◽  
Private Equity ◽  
Abnormal Returns ◽  
Theoretical Predictions ◽  
Illiquid Investments ◽  
First Time ◽  
High Information

Intermediation in private equity involves illiquid investments, professional investors, and high information asymmetry. We use this unique setting to empirically evaluate theoretical predictions regarding intermediation. Using placement agents has become nearly ubiquitous, but agents are associated with significantly lower abnormal returns in venture and real estate funds, consistent with investor capture and influence peddling. However, returns are higher for buyout funds employing a top-tier agent and for first-time real estate and venture funds employing an agent, and are less volatile for agent-affiliated funds, consistent with a certification role. Our results suggest heterogeneous motives for intermediation in the private equity industry.

The impact of strategic deviance on analysts’ earnings forecasts: evidence from China

2019 ◽  
Vol 10 (3) ◽  
pp. 362-381
Author(s):  
Xiqiong He ◽  
Changping Yin
Keyword(s):  
Information Asymmetry ◽  
Corporate Strategy ◽  
Forecast Error ◽  
Environmental Uncertainty ◽  
Earnings Forecasts ◽  
Financial Information ◽  
Strategic Information ◽  
Content Type ◽  
Information Transparency ◽  
The Impact

Purpose The purpose of this paper is to explore the effect of firm’s deviant strategy on analysts’ earnings forecasts and further examine the effects of firm’s information transparency and environmental uncertainty on these relationships from information asymmetry perspective. Design/methodology/approach The sample includes listed firms on Shanghai and Shenzhen Stock Exchange during the period 2007-2013. Findings The results indicate that firms’ deviant strategies have effects on analysts’ earnings forecasts, in particular, firms with extreme strategies have less analysts following, larger forecast error and dispersion compared with firms following industry norms. Moreover, information transparency and environmental uncertainty have effects on the relationship between strategic deviance and analysts’ earnings forecasts. Practical implications The empirical results of this paper provide strong evidence that strategy information is an important source of information for analysts’ earnings forecasts, which shows that analysts should pay attention to not only financial information but also the strategic information, especially when the information is related to strategic choice. In addition, it is necessary for investors to focus on strategic information to have a better understanding on financial information of enterprises and make better investment decisions. Originality/value The findings of this study indicate that corporate strategic deviance has an effect on analysts’ earnings forecasting behavior. This study enriches research studies on corporate strategy and external stakeholders and complements related research on analysts’ earnings forecasts from strategic perspective and information asymmetry perspective.

scholarly journals Measuring Information Asymmetry in Large Active Firms on the Tehran Stock Exchange

2016 ◽  
Vol 63 (3) ◽  
pp. 333-346
Author(s):  
Mostafa Shamsoddini ◽  
Mohammad N. Shahiki Tash ◽  
Farhad Khodadad-Kashi
Keyword(s):  
Firm Performance ◽  
Financial Markets ◽  
Information Asymmetry ◽  
Stock Markets ◽  
Stock Exchange ◽  
Composite Index ◽  
Financial Information ◽  
Investment Strategies ◽  
Information Measuring ◽  
Informational Environment

In financial markets, transparency of financial information is one of the most effective variables of investment strategies. Information asymmetry can seriously affect firm performance on the stock exchange and firms with a poor informational environment can lose the interest of investors. Reducing information asymmetry can have an important effect on firm performance on the stock exchange. Firms may lack a clear informational environment in the market because of the emerging conditions governing the Tehran Stock Exchange. Because larger and more active firms on the Tehran Stock Exchange provide more information, measuring the informational environment of these firms provides an overview of information asymmetry. The present study calculated the information asymmetry in these firms using the PIN and FE indices. The inconsistent results provided by these indices prompted the authors to offer a new index that is a composite of the PIN and FE that can better explain information asymmetry in developing market such as Asian stock markets. The results show that the new composite index, by using the mechanisms of the PIN and FE indices, provides a better outcome. The new composite index shows that the Tosee Melli Inv (TMEL1), Mobarakeh Steel (FOLD1), Iran Mobil Tele (HMRZ1), Saipa (SIPA1) and I.N.C. Ind. (MSMI1) firms have a better informational environment on the Tehran Stock Exchange.

scholarly journals Pengaruh Struktur Modal dan Kemampulabaan Terhadap Return Saham Perusahaan Properti dan Real Estate Yang Terdaftar di BEI Tahun 2013-2015

2020 ◽  
Vol 8 (1) ◽  
pp. 19-28
Author(s):  
Wadudi Wibowo ◽  
Ani Mekaniwati
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Stock Returns ◽  
Financial Analysis ◽  
Secondary Data ◽  
Financial Information ◽  
Panel Regression ◽  
Independent Variables ◽  
Property Companies ◽  
Two Independent Variables

This research is to acknowledge the influence of capital structure and profitability to the stock returns of the listed real estate and property companies in BEI on 2013-2015. This research consists of two independent variables regarding capital structure and profitability, and one dependent variable regarding stock returns. Data used is secondary data which could be accessed from www.idx.co.id . The hypothesis testing in this research uses data panel regression model. The results are: 1) positive & significant results between DER towards capital returns 2) positive & significant results between NPM towards capital returns. The contributions for potential investors, this research was hoped to increase the knowledges of financial information of the companies specialised in real estate & properties sector. Also hoped to give good contributions to discussion on financial analysis particularly related with DER, NPM & capital returns.   Keywords : capital structure, profitability, stock returns, and data panel regression

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