scholarly journals EXPLORATION ON THE DEFINITION AND THE REAL MEANING OF CORPORATE REAL ESTATE TERM

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Farahiyah Fadzil
Keyword(s):  
Real Estate ◽  
Paradigm Shift ◽  
Annual Report ◽  
Annual Reports ◽  
Accounting Standard ◽  
Corporate Real Estate ◽  
Asset Value ◽  
Definition Of ◽  
Real Estate Assets ◽  
A Company

Corporate Real Estate (CRE) is not a new term in the field of property research. In fact, disciplines of CRE research are becoming increasingly widespread nowadays. Consequently, the interpretation of CRE term has undergone a paradigm shift as time goes by. This study explored the definitions of CRE in the eyes of academicians and researchers as well as the meanings of CRE based on Malaysian Accounting Standard Board (MASB). Literatures were chosen to illustrate the breadth of knowledge available regarding the CRE definition. The broad definition of Corporate Real Estate (CRE) term (since 1983 to 2016) has been presented in the form of table. The discussion on the definition of CRE involves four phases, where each phase consists of 10 years. This allowed the researcher to see whether there were any changes or improvements to the definition of CRE in the last 40 years. Then, the CRE meaning was further examined, but from a different perspective. Therefore, content analysis of annual reports prepared by 40 Malaysian non-property public listed companies was conducted in order to identify the CRE term that has been applied in their companies. It was found that the CRE term was not adopted to represent real estate of a particular company. This study managed to identify 29 different terms that represent corporate real estate assets, of which nine (9) are used to represent “building” while six (6) are used to represent “land”. However, to understand the CRE of a company, the terms used in the company annual report are insufficient. What is more important is to recognise the information related to the CRE asset value. The information is not only intended to illustrate the wealth of company CRE assets, but also to pinpoint anything that happens to CRE such as depreciation, disposal, etc.

Stock Market Reaction to Corporate Real Estate Divestitures and Acquisitions during the Global Financial Crisis

2015 ◽  
Vol 73 (5) ◽  
Author(s):  
Annie Wong Ping Eng ◽  
Janice YM Lee ◽  
Muhammad Najib Mohamed Razali ◽  
Mat Naim Abdullah @ Mohd Asmoni ◽  
Izran Sarrazin Mohammad
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Stock Market ◽  
Global Financial Crisis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Stock Market Reaction ◽  
Corporate Real Estate ◽  
The Global Financial Crisis ◽  
Real Estate Assets

Real estate divestitures and acquisitions (D&A) are conducted as part of corporate restructuring. This study aims to fill the knowledge gap on abnormal stock market returns (AR) toward D&A activities during the Global Financial Crisis (GFC) in a developing country. Malaysian listed non-real estate companies that conducted D&A during the GFC are used as sample. Event study is applied to determine AR surrounding D&A announcements within (-10day, +10day) event window. Results for both D&A announcements shows insignificant AR on and around announcement date (-1 to +1). For pre-announcement, divesting (acquiring) companies obtain negative (positive) AR, signifying that the market does not favor (favor) divestitures (acquisitions) due to leakage of information. The outcome of post-announcement proves that divesting companies continue to experience negative ARs, although most divesting companies were paid premium prices. However, acquiring companies experience significant and negative post-announcement AR. This is probably due to the price premium which most acquiring companies paid exceeding valuation for their acquisitions. In summary, the market disapproves divestitures in general and acquisitions of real estate assets exceeding their valuations during economic recessions.  

scholarly journals IS THE MUCH DISCUSSED AGILITY OF CORPORATE REAL ESTATE VISIBLE IN PRACTICE? AN EMPIRICAL STUDY OF THE RELATIONSHIP BETWEEN BUSINESS METRICS AND SURPLUS PROPERTY

2019 ◽  
Vol 23 (4) ◽  
pp. 227-243
Author(s):  
Howard Cooke ◽  
Rianne Appel-Meulenbroek ◽  
Theo Arentze
Keyword(s):  
Real Estate ◽  
Financial Services ◽  
Time Lag ◽  
Economic Recession ◽  
Annual Reports ◽  
Financial Reports ◽  
Corporate Real Estate ◽  
Business Metrics ◽  
The Relationship ◽  
Dynamic Alignment

Very little work has been undertaken on the consequences of economic recession on Corporate Real Estate (CRE) and its realignment following strategy changes. Only those CRE portfolios with short term leases have a dynamic alignment capability allowing them to readily adjust to change. For those with longer leases this leads to the creation of a surplus property provision (SPP). This paper analyses the relationship between SPP and metrics for business and CRE through a period of significant change, by examining company annual reports using a distributed time lag auto-regression model. The results show an inverse relationship between SPP and profits but a positive relationship with both turnover and employment, suggesting that declining profits trigger the re-shaping of CRE. SPP is used to provide portfolio flexibility because of the lack of dynamic alignment capability. SPP increases as the commitment to short leases (<5 years) increases. The estimated time for SPP to revert to zero ranges from 3 to 9 years, but one category, financial services, is continuing to increase its liability. CRE agility has yet to be visible in the financial reports of companies, suggesting its impact remains limited, indicating the relationship between business parameters and CRE is more complicated than envisaged.

Non-financial KPIs in annual report narratives: Australian practice

2019 ◽  
Vol 32 (1) ◽  
pp. 7-19 ◽  
Author(s):  
Lyndie Bayne ◽  
Marvin Wee
Keyword(s):  
Voluntary Disclosure ◽  
Annual Report ◽  
Performance Indicator ◽  
Preliminary Evidence ◽  
Annual Reports ◽  
Accounting Standard ◽  
Content Type ◽  
Financial Measures ◽  
Reporting Practices ◽  
Common Category

Purpose The purpose of this paper is to provide preliminary evidence on current practices in non-financial key performance indicator (KPI) reporting in annual reports by listed Australian companies to inform Australian legislators and accounting standard setters contemplating regulations and guidance for non-financial performance disclosure, including input into the revision of IFRS Practice Statement 1: Management Commentary (2010). Design/methodology/approach Non-financial KPIs were hand-collected from the annual report narratives of 40 listed Australian companies from five sectors in 2016. Trends in the type, quantity, comparability and range of non-financial KPIs were analysed, and the association between company characteristics and non-financial disclosure was explored. Findings In total, 78 per cent of the sampled companies disclose non-financial KPIs in their annual reports, reporting 11 non-financial KPIs per company on average. The most common category is Employee, followed by Environment, accounting for 68 per cent of non-financial KPIs. Provision of comparators is low, with only 28 per cent of non-financial KPIs disclosed with prior year results and 24 per cent disclosed with a target. Companies disclose across a median of two out of seven categories. Company size is shown to be associated with non-financial measures. Originality/value The study contributes initial detailed empirical Australian evidence of non-financial KPI reporting practices. A framework is established for assessing non-financial KPI disclosure, adding to voluntary disclosure studies. A data collection method is developed for collecting KPIs from annual report narratives, contributing to the methodology used in voluntary reporting content analysis.

Extracting Key Phrases as Predictors of Corporate Bankruptcy: Empirical Analysis of Annual Reports by Text Mining

2011 ◽  
Vol 8 (1) ◽  
pp. 31-44 ◽  
Author(s):  
Cindy Yoshiko Shirata ◽  
Hironori Takeuchi ◽  
Shiho Ogino ◽  
Hideo Watanabe
Keyword(s):  
Annual Report ◽  
Prediction Models ◽  
Bankruptcy Prediction ◽  
Annual Reports ◽  
Financial Reports ◽  
Nonfinancial Information ◽  
Financial Position ◽  
Key Phrases ◽  
Retained Earnings ◽  
A Company

ABSTRACT Bankruptcy predictions have been one of the most interesting topics for accounting researchers. Most bankruptcy prediction models are developed by using financial ratios. However, signs of the changing financial position of a company may appear in the nonfinancial information earlier than we can identify the changes in the financial numbers. In recent years, analysis of qualitative information has become remarkably important, because frequent changes in accounting standards have made it difficult to compare financial numbers between years. In this study, we analyzed the sentences in financial reports in Japan and extracted key phrases/descriptions to predict bankruptcy. Our research revealed that if some particular expressions appear together with the word “dividend” or “retained earnings” in the same section of an annual report, they were effective in distinguishing between bankrupt companies and non-bankrupt companies.

scholarly journals Pengaruh Likuiditas, Profitabilitas, Ukuran Perusahaan, dan Kepemilikan Saham Publik terhadap Pengungkapan Laporan Tahunan Pada Perusahaan Property dan Real Estate yang Terdaftar Pada Bursa Efek Indonesia Tahun 2016-2019

2021 ◽  
Vol 5 (2) ◽  
pp. 500
Author(s):  
Elisa Yang ◽  
Pearlren Wijaya ◽  
Aurellia Sarikho ◽  
Thevania Gladystella ◽  
Maya Sabirina Panggabean
Keyword(s):  
Real Estate ◽  
Annual Report ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Annual Reports ◽  
Test Results ◽  
Share Ownership ◽  
Positive Effects ◽  
Public Share

This research aims to determine the Effect of Liquidity, Profitability, Company Size, and Public Share Ownership on Disclosure of Annual Reports on Property and Real Estate Companies Listed on the Indonesia Stock Exchange. The data used is sourced from the annual financial statements on the Indonesia Stock Exchange in 2016-2019. And there has been a selection based on the criteria that have been determined. The population used in the study was 50 companies and the sample used amounted to 21 companies. The technique in selecting a sample is to use the Purposive Sampling technique. The study used multiple linear regression analysis methods. From this study showed that Liquidity and Profitability had no significant effect on the Annual Report Disclosure Index on Property and Real Estate Companies Listed on the Indonesia Stock Exchange because the partial test results on liquidity variables negatively 0.01 percent and significant value positive effects 0.9 percent and partial test results on profitability variables negatively 1.4 and significant value positive influence 0.1 percent which proving not always the level of liquidity and profitability of the company will have a positive effect on the disclosure report. While the Size of the Company and Public Share Ownership have a significant influence on the Annual Report Disclosure Index on Property and Real Estate Companies Listed on the Indonesia Stock Exchange because the partial test results on the company's size variables positively affect 2.1 percent and significant value negatively affect 0.03 percent and partial test results on public share ownership variables positively affect 3.6 percent. But all variables have an simultaneous effect on the Annual Report Disclosure Index on Property and Real Estate Companies Listed on the Indonesia Stock Exchange.

The pricing of corporate real estate holdings on the UK capital market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julian Seger ◽  
Kristina Stoner ◽  
Andreas Pfnuer
Keyword(s):  
Real Estate ◽  
Capital Market ◽  
Service Industries ◽  
Content Type ◽  
Balance Sheets ◽  
Corporate Real Estate ◽  
The Uk ◽  
Real Estate Assets ◽  
Estate Ownership ◽  
The Capital Market

Purpose The purpose of this study is to find out if corporate real estate ownership is priced into the capital market performance of non-property companies in the UK. This is of particular interest because ownership still represents a significant weight on the balance sheets and is predominantly considered unfavourable due to its bulkiness and difficult revisability in the event of changes in space demand. This draws attention to the UK as one of the most important European economies that have been exposed to strong uncertainties and dynamics, for example, due to the withdrawal voting of the United Kingdom from the European Union (BREXIT). Design/methodology/approach A first look at the real estate assets reported in balance sheets provides insight into possible changes in ownership strategy. This serves as a basis for subdividing companies based on their real estate assets using a portfolio-based approach and that are then analysed using the Fama and French multi-factor model with regard to their influence on capital market returns. Findings In general, the share of real estate assets has fallen over the past 10 years, although coinciding with BREXIT voting, some industries such as manufacturing show a turnaround. At the same time, ownership is priced in as a factor on the capital market, which applies to a sample across industries, as well as to separately considered sectors in the manufacturing and service industries. The pricing also shows a counter-cyclical pattern. Practical implications Corporate real estate management should be aware of the negative influence of ownership, especially against the background of economic fluctuations. The reduction of ownership can reduce the associated cost of capital and increase company success. Originality/value Previous UK-related studies mostly refer to a period before the global economic crisis in 2008, and therefore, are too old to reflect a changed view on corporate real estate ownership because of new corporate environmental conditions, based on inaccurate proxies or mainly refer to the retail segment. This research gap is closed.

Sign in / Sign up

Export Citation Format

Share Document