Intellectual capital in tangible intensive firms: the case of Brazilian real estate companies

2014 ◽  
Vol 15 (2) ◽  
pp. 333-348 ◽  
Author(s):  
Daniel Pitelli Britto ◽  
Eliane Monetti ◽  
Joao da Rocha Lima Jr
Keyword(s):  
Real Estate ◽  
Intellectual Capital ◽  
Value Creation ◽  
Market Value ◽  
Fair Value ◽  
Market Risk ◽  
Cross Sectional ◽  
Content Type ◽  
Physical Assets ◽  
Using Data

Purpose – The purpose of this paper is to clarify whether value created by real estate (RE) companies (tangible intensive firms) can be evaluated better using intellectual capital (IC) elements (human, structural and physical assets) or traditional accounting measures of efficiency (ROIC and profit margins). Design/methodology/approach – Correlations and cross-sectional OLS regressions with robust standard errors were used to find relationships between variables explaining value creation. Data were collected from 2007 to 2011 for Brazilian RE firms. To measure market risk, the authors used a new approach to deal with low liquidity. VAIC and I j ratios were used as IC proxies even though both have limitations. Findings – IC has a significant inverse relationship with market value. The more valuable companies showed lower levels of IC except for CEE which explains value as much as ROIC. Also, IC does not influence market risk caused by size and leverage and does not explain ROIC. Research limitations/implications – The limitations of this study result from time and proxy variables. IC was measured by a VAIC model using data from a period of intense volatility. To increase the robustness of the conclusions, other variables should be used as proxies for IC and the results compared. The VAIC model has certain deficiencies in measuring IC. Practical implications – Managers and investors in the RE sector need to change the way they create value and measure value creation. The low level of HC explaining either ROIC or market value is a signal of low innovation which, combined with high CEE, induces a short-term outlook. Originality/value – This study opens discussion of IC in the Brazilian RE sector. A new methodology for identifying value creation is necessary for better evaluation and determining the fair value of firms.

The effect of leverage on the performance of real estate companies

2018 ◽  
Vol 11 (3) ◽  
pp. 284-318 ◽  
Author(s):  
Giacomo Morri ◽  
Karoline Jostov
Keyword(s):  
Real Estate ◽  
Risk Premium ◽  
Market Risk ◽  
Local Market ◽  
Cross Sectional ◽  
Content Type ◽  
Crisis Period ◽  
Market Risk Premium ◽  
Fama And French ◽  
The Impact

Purpose This paper aims to investigate the impact of leverage on the total shareholder return of European publicly traded real estate vehicles in three periods: Crisis Period (2007-2009), Rebound Period (2009-2014) and the Whole Period. Design/methodology/approach Cross-sectional analysis is used and the leverage effect on the performance is controlled for seven other independent variables (local market risk premium, size, book-to-market, short-term debt, cash); moreover, regional differences are accounted for. Findings It is established that during the Crisis Period, leverage levels are negatively associated with performance: this relationship also holds throughout the Whole Period, implying that for real estate securities, the cost of financial distress is larger than the potential gain from taxation, although the economic significance of it is limited. The Fama and French (1992) three factors, including size, book-to-market and local market risk premium, are found to be relevant, which is consistent with the literature. In addition, the UK and Sweden regions are identified as significant. Originality/value Even if there is sizeable body of literature on determinants of leverage and determinants of asset returns, little work has been done on how leverage affects the returns of European real estate companies. In addition, this paper takes advantage of observations from a full economic cycle and the possible effects of the crisis period.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

What drives housing prices, rent and new construction in China

2017 ◽  
Vol 10 (5) ◽  
pp. 662-686
Author(s):  
Dimitrios Staikos ◽  
Wenjun Xue
Keyword(s):  
Real Estate ◽  
Empirical Test ◽  
Housing Prices ◽  
Panel Cointegration ◽  
Real Estate Market ◽  
Estimation Methods ◽  
Content Type ◽  
New Construction ◽  
Using Data ◽  
First Time

Purpose With this paper, the authors aim to investigate the drivers behind three of the most important aspects of the Chinese real estate market, housing prices, housing rent and new construction. At the same time, the authors perform a comprehensive empirical test of the popular 4-quadrant model by Wheaton and DiPasquale. Design/methodology/approach In this paper, the authors utilize panel cointegration estimation methods and data from 35 Chinese metropolitan areas. Findings The results indicate that the 4-quadrant model is well suited to explain the determinants of housing prices. However, the same is not true regarding housing rent and new construction suggesting a more complex theoretical framework may be required for a well-rounded explanation of real estate markets. Originality/value It is the first time that panel data are used to estimate rent and new construction for China. Also, it is the first time a comprehensive test of the Wheaton and DiPasquale 4-quadrant model is performed using data from China.

scholarly journals POWER LAWS IN REAL ESTATE PRICES DURING BUBBLE PERIODS

2012 ◽  
Vol 16 ◽  
pp. 61-81 ◽  
Author(s):  
TAKAAKI OHNISHI ◽  
TAKAYUKI MIZUNO ◽  
CHIHIRO SHIMIZU ◽  
TSUTOMU WATANABE
Keyword(s):  
Real Estate ◽  
Power Law ◽  
House Price ◽  
Power Laws ◽  
Cross Sectional ◽  
Price Distribution ◽  
Before And After ◽  
Real Estate Prices ◽  
Using Data ◽  
The U.S

How can we detect real estate bubbles? In this paper, we propose making use of information on the cross-sectional dispersion of real estate prices. During bubble periods, prices tend to go up considerably for some properties, but less so for others, so that price inequality across properties increases. In other words, a key characteristic of real estate bubbles is not the rapid price hike itself but a rise in price dispersion. Given this, the purpose of this paper is to examine whether developments in the dispersion in real estate prices can be used to detect bubbles in property markets as they arise, using data from Japan and the U.S. First, we show that the land price distribution in Tokyo had a power-law tail during the bubble period in the late 1980s, while it was very close to a lognormal before and after the bubble period. Second, in the U.S. data we find that the tail of the house price distribution tends to be heavier in those states which experienced a housing bubble. We also provide evidence suggesting that the power-law tail observed during bubble periods arises due to the lack of price arbitrage across regions.

Is property management viewed as a value-added service?

2019 ◽  
Vol 37 (2) ◽  
pp. 262-274 ◽  
Author(s):  
Dustin C. Read ◽  
Andrew Carswell
Keyword(s):  
Real Estate ◽  
Value Creation ◽  
Value Added ◽  
Professional Service ◽  
Property Management ◽  
Individual Property ◽  
Content Type ◽  
Creation Process ◽  
A Value ◽  
Value Creation Process

PurposeThe purpose of this paper is to examine the perspectives of real estate executives to assess the extent to which property management is viewed as a commodity or as a value-added professional service contributing positively to investment performance and property value maximization.Design/methodology/approachThe qualitative analysis draws on the result of 93 semi-structured interviews conducted with executives employed by some of the largest real estate investment management and service firms across the USA.FindingsThe findings suggest that significant perceptual cleavages exist in the real estate industry, with some executives believing property managers are incredibly important to the value creation process and others believing they play a much more modest role.Practical implicationsThe results highlight the need for the property management industry as whole to continue its efforts to gain recognition as a value-added professional service and for individual property management companies to actively take steps to differentiate themselves from competitors if they hope to avoid commodification and fee compression.Originality/valueThe study is the first to the authors’ knowledge to examine real estate executives’ perspectives about the roles property managers play in the value creation process, as well as their views about whether property managers have the skills and autonomy required to make value accretive decisions.

Intellectual Capital Investment, Stakeholders' Value, Firm Market Value and Financial Performance: The Case of Tunisia Stock Exchange

2013 ◽  
Vol 12 (02) ◽  
pp. 1350010 ◽  
Author(s):  
Hedia Fourati ◽  
Habib Affes
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Capital Investment ◽  
Positive Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Market Value ◽  
Market Valuation ◽  
Using Data

The purpose of this paper is to investigate the role of intellectual capital investment in improving the firm's market value, stakeholders' value and financial performance. Using data drawn from 21 listed companies in Tunisia Stock Exchange, we conducted two studies. On one hand, from using Charreaux (Charreaux (2006). La valeur partenariale: Vers une mesure opérationnelle. Cahier de FARGO no. 1061103, November) measure of stakeholders' value, we demonstrate that financials come to present the weakest stakeholders' value and clients monopolises in term of value acquisition due to a weak ability of negotiation of firms. On the other hand, we construct a regression model of Pulic's value added intellectual capital investment (VAIC) as the measure of the value added from intellectual capital, in market valuation and financial performance. Our results stressed the fact that there is a positive impact of intellectual capital by human capital efficiency and capital employed efficiency on improving firm's market value. Nevertheless, financial performance measured by ROA is still justified by the traditional measure relying on capital employed efficiency. Indeed for Tunisian quoted firms, human capital investment is a pilar for ameliorating firm market valuation of financial performance.

Voluntary disclosure and intellectual capital: how CEOs mobilise discretionary accounting narratives to account for value creation stemming from intellectual capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elisabeth Albertini ◽  
Fabienne Berger-Remy ◽  
Stephane Lefrancq ◽  
Laurence Morgana ◽  
Miloš Petković ◽  
...  
Keyword(s):  
Intellectual Capital ◽  
Value Creation ◽  
Voluntary Disclosure ◽  
Research Question ◽  
Balance Sheet ◽  
Content Type ◽  
Customer Capital ◽  
The Media ◽  
Environmental Capital ◽  
Required Disclosures

PurposeThis research aims to contribute to the current discussion led by international accounting bodies on intellectual capital narratives. Before setting a standard, a preliminary step is to highlight intellectual capital components' sources of value. The objective of this exploratory paper is to contribute to the discussion by proposing a detailed description and taxonomy of intellectual capital based on an analysis of discretionary accounting narrative disclosures in CEO letters.Design/methodology/approachTo answer the research question, a computerised lexical content analysis was done of 241 letters from the CEOs of S&P Euro 350 companies addressed to shareholders.FindingsBeyond the required disclosures about balance sheet intangibles, this study brings to light discretionary narratives about human, digital, customer and environmental capital and their interactions. In particular, CEOs are promoting two new themes, environmental capital and digital capital, as major contributors to value creation.Research limitations/implicationsThe limitations of this study are inherent in the media studied, namely the CEOs' letters to shareholders, which were written as part of the firms' official communication.Practical implicationsThe main contribution of the research is a detailed description of the intellectual capital components that CEOs consider to be at the heart of their companies' models to create value. Human and customer capital were already familiar under the previous classification, but CEOs present digital and environmental capital as areas of opportunity or risk in their discretionary narratives.Originality/valueThe article contributes to the current international discussions on intellectual capital by focusing on discretionary accounting narratives. It seeks to provide guidelines concerning future standards in the current stage of intellectual capital research.

Harnessing social interaction and intellectual capital in intergovernmental networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose M. Barrutia ◽  
Carmen Echebarria
Keyword(s):  
Social Capital ◽  
Social Interaction ◽  
Intellectual Capital ◽  
Discriminant Validity ◽  
Structural Model ◽  
Shared Vision ◽  
Structural Level ◽  
Shared Resources ◽  
Cross Sectional ◽  
Content Type

PurposeIntellectual capital creation (ICC) in networks has been considered as central to the processes for responding to wicked problems. However, knowledge on the factors that explain ICC in networks is limited. We take a step toward filling this research gap by drawing on an extended view of social capital to identify specific network features that should explain ICC heterogeneity in engineered intergovernmental networks.Design/methodology/approachA sample of 655 local authorities participating in 8 networks was used to test the framework proposed. Data analysis followed a three-step approach. Firstly, confirmatory factor analysis was applied to assess the convergent and discriminant validity of the measures. Secondly, a non-parametric median test was conducted to determine whether the variables under study were statistically different for the eight networks. Lastly, the structural model underlying the conceptual framework was tested.FindingsThe authors found that the eight intergovernmental networks studied differed significantly in their levels of social interaction and ICC. At a structural level, three variables usually considered representative of social capital (social interaction, trust and shared vision) and two supplementary variables (shared resources and shared decisions) were proven to have significant direct and/or indirect effects on ICC.Originality/valueNo previous cross-sectional research has studied the link between the creation of social capital and intellectual capital in engineered intergovernmental networks. As this research focuses on networks and climate change, it contributes to the fourth and fifth stages of intellectual capital research.

scholarly journals Enhancing human capital beyond university boundaries

2019 ◽  
Vol 10 (2) ◽  
pp. 434-446
Author(s):  
Maria Jakubik
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Value Creation ◽  
Design Methodology ◽  
Educational Institution ◽  
Master's Students ◽  
Content Type ◽  
Master Thesis ◽  
External Stakeholders

Purpose The purpose of this paper is to present a case about the emergence of human capital (HC) during the master thesis as a work-based learning project. Design/methodology/approach The case study uses data from 107 master’s students 2007–2011 and feedback from 91 managers as business advisors 2007–2016. Findings The findings show direct contributions of higher education (HE) to intellectual capital (IC) in organisations through the enhanced HC of managers. Originality/value The case contributes to the emerging new, fifth stage of IC research by demonstrating how HC develops beyond the boundaries of an educational institution; how it influences an organisation’s IC and how 91 business advisors, as external stakeholders, assessed the achievements and value creation of HE.

scholarly journals Going beyond buildings: mindfulness and real estate user behavior

2019 ◽  
Vol 21 (3) ◽  
pp. 194-211
Author(s):  
Nicolas Julian Seyler ◽  
Jan Mutl
Keyword(s):  
Environmental Impact ◽  
Real Estate ◽  
Structural Equation ◽  
Environmental Attitudes ◽  
Positive Impact ◽  
Self Report ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Effects

Purpose Building performance does not only depend on its efficiency but also on the behaviors of its occupants. Occupant behaviors can more than offset technological efficiency gains so, that corporate real estate (CRE) managers have to go beyond sustainable buildings. CRE managers need to understand occupants to effectively reduce the environmental impact of their building portfolio. This paper aims to investigate the effects of environmental attitudes and mindfulness on occupant behaviors at home and at the office. Thereby, the authors address numerous calls for research regarding the drivers of more environmental real estate user behaviors. Design/methodology/approach The authors use partial least squares structural equation modeling based on self-report data obtained for a representative German sample. Findings The results show that environmental attitudes and mindfulness have both positive effects on occupant behaviors. However, the effects tend to be weaker in the office context. Research limitations/implications This study relies on self-reports as an indicator of actual behaviors. Besides, the findings are limited by the cross-sectional nature of the data. Practical implications Environmental education and mindfulness training may be an effective way to promote more environmental occupant behaviors and help CRE managers to further reduce the environmental impact of their building portfolio. Originality/value The paper contributes to prior research about the antecedents of environmental behaviors and provides evidence for the positive impact of environmental attitudes and mindfulness on occupant behaviors. The author provide a new approach for CRE managers, which may improve occupant behaviors.

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