Pricing to market: market value – the enigma of misunderstanding

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nick French ◽  
Neil Crosby ◽  
Chris Thorne
Keyword(s):  
Market Value ◽  
Property Market ◽  
Content Type ◽  
Market Participants ◽  
Valuation Process ◽  
Definition Of ◽  
The Right ◽  
Practical Implications ◽  
Is Value

PurposeMarket value is an estimation of price in the market. It is value in exchange. The valuer's role is to determine the appropriate approach, the method and use the right model to achieve this aim as best as possible. However, underpinning all valuations and property analysis are valuation standards and definitions. This paper looks at the definition of market value and how some market participants may misunderstand or even misrepresent it. This is particularly true when there is a downturn in the market.Design/methodology/approachThis practice briefing is an overview of the role of market value as a definition of price and how it is often misused by stakeholders in the property market.FindingsThis briefing is a review of the valuation definitions clarifying what they mean and what they do not mean.Practical implicationsThe role of the valuer in practice is to use the appropriate definition for the task in hand. The understanding of those definitions is central to the valuation process.Originality/valueThis provides guidance on how valuation definitions can be presented to the client in accordance with the International Valuation Standards.

Pricing to market: property valuation methods – a practical review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Gabrielli ◽  
Nick French
Keyword(s):  
Specific Property ◽  
Market Value ◽  
Content Type ◽  
Valuation Methods ◽  
Property Valuation ◽  
Valuation Method ◽  
Valuation Process ◽  
Valuation Task ◽  
The Right

PurposeValuation is the process of determining Market Value. Property valuation, as with the valuation of all assets, is an estimation of price in the market. It is value in exchange. The valuer role is to determine the appropriate approach, the method and use the right model to achieve this aim as best as possible. It is a combination of analysing the market and determining the critical variables for the valuation method/model. The method is separate from the valuation process which should be followed (according to the International Valuation Standards Council Valuation Standards) regardless the valuation method chosen. There are valuation approaches, valuation methods and, as a subset of the methods, techniques or models.Design/methodology/approachThis practice briefing is an overview of the Valuation Methods and Models available to the valuer and comments on the appropriateness of valuation each in assessing Market Value for specific property types.FindingsThis briefing is a review of the valuation methods and models and models that can be applied to determine market value.Practical implicationsThe role of the valuer in practice is to identify the method of valuation and then apply the correct mathematical model for the valuation task in hand.Originality/valueThis provides guidance on how valuations can be presented to the client in accordance with the International Valuation Standards.

Pricing to market

2018 ◽  
Vol 36 (4) ◽  
pp. 391-396 ◽  
Author(s):  
Nick French ◽  
Laura Gabrielli
Keyword(s):  
Market Value ◽  
Financial Economic ◽  
Content Type ◽  
World Markets ◽  
Valuation Task ◽  
The Subject ◽  
The Right ◽  
Market Valuations ◽  
Practical Implications

Purpose Since the global financial economic crisis hit the world markets in 2007/2008, the role of property valuation has been under greater and greater scrutiny. The process of valuation and its quality assurance has been addressed by the higher prominence of the International Valuation Standards Council (IVSC). This is a significant initiative worldwide. However, there has been little written on the appropriate use of valuation approaches and methods in market valuations. There is now a hierarchy of valuation definitions. In order, there are valuation approaches, valuation methods and, as a subset of the methods, techniques or models. The purpose of this paper is to look at the importance of identifying the appropriate approach to be adopted in market valuations and the methods, techniques and models that should be applied to determine market value. Design/methodology/approach This practice briefing is an overview of the valuation approaches, methods and models available to the valuer and comments on the appropriateness of valuation each in assessing market value. Findings This paper reviews the IVSC-recognised approaches and prompts the valuer to be careful with the semantics involved so that they are better placed to provide an unambiguous service to their clients. Practical implications The role of the valuer in practice is to identify the appropriate approach for the valuation of the subject property, choose the right method and then apply the correct mathematical model for the valuation task in hand. Originality/value This provides guidance on how valuations can be presented to the client in accordance with the International Valuation Standards.

Dangerous liaisons?

2008 ◽  
Vol 29 (1/2) ◽  
pp. 116-124 ◽  
Author(s):  
John Rodwell ◽  
Linden Fairbairn
Keyword(s):  
Design Methodology ◽  
Service Delivery Model ◽  
University Libraries ◽  
Review Of The Literature ◽  
Content Type ◽  
Role Description ◽  
Definition Of ◽  
The Impact ◽  
Practical Implications

PurposeMany university libraries are adopting a faculty liaison librarian structure as an integral part of their organization and service delivery model. This paper aims to examine, in a pragmatic way, the variations in the definition of the role of the faculty liaison librarian, the expectations of those librarians, their library managers and their clients and the impact of environmental factors. The faculty liaison librarian role is not entirely new, evolving from the traditional subject librarian and university special/branch library role. However the emerging role is characterized by a more outward‐looking perspective and complexity, emphasizing stronger involvement and partnership with the faculty and direct engagement in the University's teaching and research programs.Design/methodology/approachFollowing a review of the literature and other sources on the rationale and role of library liaison, the current developments, drivers and expectations are discussed.FindingsThe study finds that dynamic external and internal environments of universities are driving the evolution of library liaison, so the role description is still fluid. However, the breadth and weight of expectations is now such that the effectiveness and sustainability of the role has to be addressed.Practical implicationsWhile a dynamic, broader and more intensive role for the faculty liaison librarian is emerging, more thinking is needed about the extent of that role and its sustainability. What, for example, are the priorities for the faculty liaison librarian? What traditional activities can, and may, have to be abandoned? These considerations are necessary not only to guide the librarians, but also to help define the attributes and skills required for the position and to determine the institutional support it requires.Originality/valueThis is a contemporary critique of the well‐established, but diverse library service – the faculty liaison librarian structure.

A “family of cycles” – major and auxiliary business cycles

2014 ◽  
Vol 32 (3) ◽  
pp. 306-323 ◽  
Author(s):  
Arvydas Jadevicius ◽  
Simon Huston
Keyword(s):  
Systematic Review ◽  
Business Cycles ◽  
Design Methodology ◽  
Market Dynamics ◽  
Property Market ◽  
Proper Understanding ◽  
Content Type ◽  
Market Participants ◽  
Practical Implications

Purpose – The paper aims to discuss the major and auxiliary types of cycles found in the literature. Design/methodology/approach – The existence of cycles within economy and its sub-sectors has been studied for a number of years. In the wake of the recent cyclical downturn, interest in cycles has increased. To mitigate future risks, scholars and investors seek new insights for a better understanding of the cyclical phenomenon. The paper presents systematic review of the existing copious cyclical literature. It then discusses general characteristics and the key forces that produce these cycles. Findings – The study finds four major and eight auxiliary cycles. It suggests that each cycle has its own distinct empirical periodicity and theoretical underpinnings. The longer the cycles are the greater controversy which surrounds them. Practical implications – Cycles are monumental to a proper understanding of complex property market dynamics. Their existence implies that economies, whilst not deterministic, have a rhythm. Cyclical awareness can therefore advance property market participants. Originality/value – The paper uncovers four major and eight auxiliary types of cycles and argues their importance.

Cyclical capitalization and lag vacancy

2017 ◽  
Vol 10 (2) ◽  
pp. 211-238 ◽  
Author(s):  
Maurizio d’Amato
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Property Market ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Valuation Process

Purpose This paper aims to propose a new valuation method for income producing properties. The model originally called cyclical dividend discount models (d’Amato, 2003) has been recently proposed as a family of income approach methodologies called cyclical capitalization (d’Amato, 2013; d’Amato, 2015; d’Amato, 2017). Design/methodology/approach The proposed methodology tries to integrate real estate market cycle analysis and forecast inside the valuation process allowing the appraiser to deal with real estate market phases analysis and their consequence in the local real estate market. Findings The findings consist in the creation of a methodology proposed for market value and in particular for mortgage lending determination, as the model may have the capability to reach prudent opinion of value in all the real estate market phase. Research limitations/implications Research limitation consists mainly in a limited number of sample of time series of rent and in the forecast of more than a cap rate or yield rate even if it is quite commonly accepted the cyclical nature of the real estate market. Practical implications The implication of the proposed methodology is a modified approach to direct capitalization finding more flexible approaches to appraise income producing properties sensitive to the upturn and downturn of the real estate market. Social implications The model proposed can be considered useful for the valuation process of those property affected by the property market cycle, both in the mortgage lending and market value determination. Originality/value These methodologies try to integrate in the appraisal process the role of property market cycles. Cyclical capitalization modelling includes in the traditional dividend discount model more than one g-factor to plot property market cycle dealing with the future in a different way. It must be stressed the countercyclical nature of the cyclical capitalization that may be helpful in the determination of mortgage lending value. This is a very important characteristic of such models.

Political advertising and voting behaviour in a nascent democracy

2019 ◽  
Vol 10 (3) ◽  
pp. 827-847
Author(s):  
Raef Abdennadher ◽  
Lazhar Ayed ◽  
Bronwyn P. Wood
Keyword(s):  
Sampling Technique ◽  
Political Advertising ◽  
Advertising Agencies ◽  
Content Type ◽  
Mediating Role ◽  
Democratic Experience ◽  
The Right ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to investigate the impact of political advertising on voter attitude and the processes of decision-making in the specific context of the inaugural democratic experience of post-revolutionary Tunisia. Design/methodology/approach The study was conducted in Tunisia, where the target respondents included Tunisian’s eligible to vote during the presidential campaign of October 2014. The study uses questionnaires for data collection using a convenience sampling technique. Findings The major findings of the study are that the persuasion power of advertising has a direct impact on voter involvement, trust and attitude towards voting. Specifically, involvement significantly influences a voter’s attitude. The hypothesis on the impact of trust on attitude, and the hypothesis related to the mediating role of trust and involvement were rejected. Research limitations/implications The study recommends specialists in political advertising and politicians themselves give consideration to the trust and involvement considerations of the Tunisian voter, to enhance and optimize the quality and credibility of political advertising in the future. Practical implications The research offers some interesting findings for professionals in political advertising, for companies operating in political research, or advertising agencies. In this context, advertising agencies need to give prescient consideration to the trust of the voter by developing a credible and believable discourse. Social implications In the context of a nascent democracy, it is very important to educate people so they become familiarized with the practices of democracy, and to give them the ability to make the right choice. The study recommends specialists in political advertising and also politicians give consideration to the trust and involvement considerations of the Tunisian voter, to enhance and optimize the quality and credibility of political advertising. Originality/value This research paper related to political advertising can be used to formulate appropriate political advertising strategies and to ameliorate and optimize the advertising discourse in the context of a nascent democracy.

Novartis Pharmaceuticals Corporation has the right prescription for diversity

2014 ◽  
Vol 22 (6) ◽  
pp. 15-17
Keyword(s):  
Executive Leadership ◽  
Leadership Positions ◽  
Content Type ◽  
Diversity And Inclusion ◽  
The Us ◽  
Employee Resource Groups ◽  
The Right ◽  
A Company ◽  
Practical Implications

Purpose – This paper aims to describe the actions that have helped Novartis Pharmaceuticals Corporation to reach No. 1 in this year’s DiversityInc top 50 companies for diversity. Design/methodology/approach – It examines the roles of the company’s executive diversity and inclusion council, diversity and inclusion councils, the diversity and inclusion department and employee-resource groups. Findings – It reveals that the number of women in top-level jobs at the company has more than doubled in the past five years. Today, women account for more than 50 per cent of executive-leadership positions. Practical implications – It advances the view that getting strategic about diversity and inclusion – and making these elements a natural part of the way a company does business – drives innovation and moves the business and people forward. Social implications – It demonstrates that, as the US workforce becomes more diverse, all companies face the challenge of creating new and better ways of recruiting and retaining talent from all segments of the workforce – and creating an inclusive culture where all perspectives are valued. Originality/value – It highlights the key role of diversity at a US affiliate of a multinational pharmaceutical company.

scholarly journals Land registration and landownership security

2017 ◽  
Vol 35 (1) ◽  
pp. 24-47 ◽  
Author(s):  
Raymond Talinbe Abdulai ◽  
Edward Ochieng
Keyword(s):  
Design Methodology ◽  
Developing World ◽  
Review Paper ◽  
Common Knowledge ◽  
Content Type ◽  
Land Registration ◽  
International Donor ◽  
The Right ◽  
Practical Implications

Purpose The assertion that land registration guarantees landownership security is common knowledge. Thus, efforts at securing landownership in particularly, the developing world have concentrated on the formulation and implementation of land registration policies. However, over the years, whilst some studies claim that land registration assures security, a lot of other studies have established that security cannot be guaranteed by land registration. Also, there is evidence from research that has shown that land registration can be a source of ownership insecurity in some cases. The purpose of this paper is to critically analyse the underpinning principles of land registration and their application in order to establish whether or not land registration can actually guarantee ownership security. Design/methodology/approach It is a literature review paper that looks at the existing literature on landownership, security and land registration systems. The land registration principles that have been subjected to critical analysis are the publicity function of land registration, the legality of ownership emanating from land registration and the warranty provided by the State in land registration, specifically, under the Torrens system. Findings An analysis of the underpinning principles of land registration shows that land registration per se cannot guarantee ownership security and this helps to explain the findings of the numerous studies, which have established that landownership security cannot be assured by land registration. The paper concludes by identifying the right role of land registration as well as a mechanism that can effectively protect or secure landownership. Practical implications Land registration policies and programmes in the developing world are often funded by the international donor community and the findings provide useful insights regarding the actual role of land registration and for policy change in terms of what can secure landownership. Originality/value Even though there are two schools of thought regarding research on the link between land registration on one hand, and landownership security on the other, none of the studies has made an attempt to consider the nexus by critically examining the principles that underpin land registration to support their arguments.

Reframing construction within the built environment sector

2019 ◽  
Vol 26 (5) ◽  
pp. 740-745 ◽  
Author(s):  
Gerard de Valence
Keyword(s):  
Built Environment ◽  
Construction Industry ◽  
Design Methodology ◽  
Professional Services ◽  
Special Role ◽  
New Approach ◽  
Content Type ◽  
Definition Of ◽  
Practical Implications

Purpose Official statistics on the output of the construction industry capture on-site activities of contractors and sub-contractors; however, the role of the industry linking suppliers of materials, machinery, products, services and other inputs is also widely recognised. These two views have been called broad and narrow, with the narrow industry defined as on-site work and the broad industry as the supply chain of materials, products and assemblies, and professional services. An argument is made for using the term “built environment sector” (BES) for the broad industry definition of construction. The paper aims to discuss these issues. Design/methodology/approach Construction industry statistics capture the on-site activities of contractors and sub-contractors. This paper reviews research that adds to construction output the contributions of suppliers of materials, machinery and equipment, products and components, professional services and other inputs required to deliver the buildings and structures that make up the built environment. Findings The same term, “construction”, has been used in a number of ways in different definitional studies of the narrow and broad industry. The term that best encompasses the large number and range of participants in the creation and maintenance of the built environment, from suppliers to end users, is the BES. Research limitations/implications Construction economics makes an important contribution to researching the macroeconomic role of the BES. There is also a special role for construction economics in researching both the boundaries of the BES and the data available on the industries that contribute to the BES. Practical implications Measuring the BES would improve the understanding of its macroeconomic role and significance. Social implications Measuring the BES would contribute to city policies and urban planning. Originality/value The paper proposes a new approach to defining and measuring the industries that contribute to the production, maintenance and management of the built environment. It introduces a new name for the combination of those industries.

Apple was sweeter when Steve Jobs held sway

2014 ◽  
Vol 22 (4) ◽  
pp. 25-28
Author(s):  
Maniam Kaliannan ◽  
Vanitha Ponnusamy
Keyword(s):  
Organizational Change ◽  
Design Methodology ◽  
Business Environment ◽  
Content Type ◽  
Steve Jobs ◽  
Apple Products ◽  
The Right ◽  
Two Sides ◽  
Practical Implications

Purpose – This paper observes that Apple illustrates the right and wrong ways to bring about organizational change, and emphasizes the key role of personalities in the process. Design/methodology/approach – Compares and contrasts the performance of Apple under the leadership of Steve Jobs and John Sculley. Findings – Advances the view that Steve Jobs was more successful because he focused on innovation, while John Sculley paid more attention to current products and profitability. Practical implications – Describes how the Steve Jobs era saw the introduction of such iconic Apple products as the iPod, iPhone and iPad, which helped the company to gain pre-eminence in its field. Social implications – Argues that, in today’s globalized business environment, organizational change is a must. Demonstrates how to achieve this successfully. Originality/value – Describes two sides of the Apple story and draws the lessons for other businesses involved in organizational change.

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