scholarly journals Comparative Analysis of Transaction Prices and the Values of Forest Properties in Poland

Forests ◽  
2020 ◽  
Vol 11 (12) ◽  
pp. 1323
Author(s):  
Radosław Gaca ◽  
Robert Zygmunt ◽  
Michal Gluszak
Keyword(s):  
Imperfect Information ◽  
Private Forest ◽  
Market Prices ◽  
Market Participants ◽  
Market Values ◽  
Transaction Prices ◽  
Property Prices ◽  
Additional Question ◽  
Unbiased Estimates ◽  
Asymmetrically Distributed

Research Highlights: In the paper, we explore systematic discrepancy between sale prices and values of forest properties in Poland. We argue that the systematic valuation bias found is partially caused by the simplified parametric appraisal methodology currently used in Poland. Background and Objectives: Most of the forests in Poland are state-owned, but in recent decades, the market for private forest properties has been dynamically growing. In the paper, we investigate the relations between the actual transaction prices, and the estimated value of forest properties in selected regions in Poland. We hypothesize that sale prices systematically deviate from valuations. An additional question arises regarding the determinants of forest property prices. We hypothesize that due to asymmetric information positive amenities are not fully capitalized in property prices in Poland. Materials and Methods: In the paper, we adopt two regression models used to investigate the valuation accuracy and bias. We test the hypothesis that valuations are unbiased estimates of transaction prices. Results: The results indicate that market prices for forest properties systematically differ from estimated values. Conclusions: Systematic deviation of forest property sales prices from market values may contribute to the imperfect information available to the market participants, especially when information is asymmetrically distributed between buyers and sellers. This may confirm the hypothesis that sellers are not fully aware of the advantages of the property being sold, and provide further explanations for large systematic differences between sales prices and valuations based on parametric valuation methods used in Poland.

Assessing Impact of Freshwater Lake Ecosystem on Residential Property Prices using Hedonic Property Pricing approach: Evidence from Vellayanilake of Kerala

2020 ◽  
pp. 125-130
Keyword(s):  
Economic Effect ◽  
Lake Ecosystem ◽  
Aesthetic Value ◽  
Market Prices ◽  
Scenic Beauty ◽  
Property Prices ◽  
Property Price ◽  
Valuation Technique ◽  
Hedonic Property ◽  
The Impact

ABSTRACT The ecosystem services provided by wetlands can be direct or indirect. The direct services can be mostly valued through market prices, but the indirect service like aesthetic beauty and its impact on property prices surrounding the natural resource cannot be directly measured. To single out the economic effect of particular amenity which influenced the land property prices, the advanced valuation technique Hedonic property pricing was most popularly used. In this study, it was attempted to assess using the hedonic property pricing technique, the impact of the presence of the freshwater body, the Vellayani Lake on land property prices surrounding it. The results revealed that the marginal implicit price of getting one cent of land with lake view evaluated at mean property price of Rs. 2,44250 was Rs.79171. The total aesthetic value of land with the scenic beauty of the lake was Rs. 275.92 crores.

Security Analyst and Stock Market Efficiency in Anticipating Tax-Motivated Income Shifting

2006 ◽  
Vol 81 (1) ◽  
pp. 227-250 ◽  
Author(s):  
Philip B. Shane ◽  
Toby Stock
Keyword(s):  
Earnings Forecasts ◽  
Income Shifting ◽  
Market Prices ◽  
Tax Rate ◽  
Income Effects ◽  
Market Participants ◽  
Security Analyst ◽  
Market Inefficiency ◽  
Reported Earnings ◽  
Statutory Tax Rate

In the context of the statutory tax rate reductions enacted in the Tax Reform Act of 1986, this paper investigates the degree to which capital market participants anticipate and correctly interpret temporary income effects of tax-motivated income shifting. We find evidence consistent with financial analysts' earnings forecasts failing to anticipate earnings management that shifts income from fourth quarters in higher tax rate years to immediately following first quarters of lower tax rate years. The evidence suggests that this failure is not the result of a decision to ignore the income shifting, but rather an inability to recognize temporary components of reported earnings. We also find evidence that market prices do not fully reflect the temporary income effects of tax-motivated income shifting, and that analyst inefficiency explains about half of the market inefficiency. We interpret these inefficiencies as potentially important costs of tax planning that could limit the ability of public firm managers to implement otherwise optimal tax strategies.

Applying Property Pricing Models to Estimate a Foreclosure Discount in the Hotel Real Estate Sector

2021 ◽  
pp. 193896552110586
Author(s):  
Amrik Singh
Keyword(s):  
Hedonic Model ◽  
Repeat Sales ◽  
Cross Sectional ◽  
Market Prices ◽  
Holding Period ◽  
Transaction Prices ◽  
Real Estate Sector ◽  
Study Results ◽  
Deferred Maintenance ◽  
Independent Hotels

This study investigates the magnitude of the foreclosure sale discount in the hotel sector. The foreclosure sales discount is captured using three different models: hedonic, hybrid, and repeat sales. Controlling for various hotel attributes and time, the hedonic model shows a foreclosure discount of 40%, followed by the repeat sales model at 42% and the hybrid model at 45%, all relative to non-distressed market prices. The results of the study provide novel empirical evidence of cross-sectional variation in foreclosure discounts between independent hotels and branded hotel segments and by location. In particular, variation in the foreclosure discount is driven by independent and upscale hotels and hotels located in resorts, small metro towns, and urban locations. In addition, the study results reveal the influence of occupancy, deferred maintenance, renovation, and holding period on transaction prices.

Nature of Financial Risk

2019 ◽  
pp. 1-15
Author(s):  
Hyun Song Shin
Keyword(s):  
Financial Risk ◽  
Dual Role ◽  
Market Prices ◽  
Market Participants ◽  
Millennium Bridge

Risk is endogenous. The brief opening and then the closing of the Millennium Bridge in London in 2000 illustrates how market prices play a dual role: they are simultaneously a reflection of market participants’ actions as well as an imperative for their actions.

scholarly journals Economics of Stony Land Reclamation for Crop Production in South-Western Quebec

1986 ◽  
Vol 15 (2) ◽  
pp. 108-116
Author(s):  
Randolph Seecharan ◽  
Kisan Gunjal ◽  
Gerard Millette
Keyword(s):  
Crop Production ◽  
Agricultural Land ◽  
Crop Yields ◽  
Land Reclamation ◽  
Programming Model ◽  
Parametric Programming ◽  
Economic Feasibility ◽  
Market Prices ◽  
Market Values ◽  
Representative Farms

Linear programming model is used to investigate the economic feasibility of utilizing stony lands for crop production in South-Western Quebec where stoniness is the major constraint. Results for the representative farms indicate that income variations are due to economies of size, differences in crop yields (experimental or farm level) and type of reclamation method used. The market values for stony lands (determined by regression technique) are higher compared with the productive values. Analysis also indicates that crop production is feasible within the parameters defined and that it is more economical to develop unutilized stony land rather than purchase prime agricultural land at current market prices. Parametric programming procedures indicate that the solutions are more sensitive to crop yields and prices than reclamation costs.

scholarly journals A Quick Gbest Guided Artificial Bee Colony Algorithm for Stock Market Prices Prediction

Symmetry ◽  
2018 ◽  
Vol 10 (7) ◽  
pp. 292 ◽  
Author(s):  
Habib Shah ◽  
Nasser Tairan ◽  
Harish Garg ◽  
Rozaida Ghazali
Keyword(s):  
Neural Network ◽  
Stock Market ◽  
Artificial Bee Colony ◽  
Learning Algorithm ◽  
Hybrid Technique ◽  
Market Prices ◽  
Market Values ◽  
Bee Colony ◽  
Global Issue ◽  
Investment Advisor

The objective of this work is to present a Quick Gbest Guided artificial bee colony (ABC) learning algorithm to train the feedforward neural network (QGGABC-FFNN) model for the prediction of the trends in the stock markets. As it is quite important to know that nowadays, stock market prediction of trends is a significant financial global issue. The scientists, finance administration, companies, and leadership of a given country struggle towards developing a strong financial position. Several technical, industrial, fundamental, scientific, and statistical tools have been proposed and used with varying results. Still, predicting an exact or near-to-exact trend of the Stock Market values behavior is an open problem. In this respect, in the present manuscript, we propose an algorithm based on ABC to minimize the error in the trend and actual values by using the hybrid technique based on neural network and artificial intelligence. The presented approach has been verified and tested to predict the accurate trend of Saudi Stock Market (SSM) values. The proposed QGGABC-ANN based on bio-inspired learning algorithm with its high degree of accuracy could be used as an investment advisor for the investors and traders in the future of SSM. The proposed approach is based mainly on SSM historical data covering a large span of time. From the simulation findings, the proposed QGGABC-FFNN outperformed compared with other typical computational algorithms for prediction of SSM values.

scholarly journals El modelo de valor razonable: La aproximación de las cifras contables a los valores de mercado (The fair value model: The aproach of the accounting figures to the market values)

2014 ◽  
Vol 8 (3) ◽  
pp. 41
Author(s):  
Eduardo Sosa Mora
Keyword(s):  
Financial Reporting ◽  
Theory Of The Firm ◽  
Financial Statements ◽  
Fair Value ◽  
Reporting Standards ◽  
Market Prices ◽  
Financial Reporting Standards ◽  
Market Values ◽  
Future Events ◽  
Value Model

<p>Desde hace muchos años, en el ámbito académico y en el profesional de la contabilidad, se debate acerca de la importancia de que los estados financieros presenten los activos y pasivos de acuerdo con sus valores de mercado, con el fin de lograr una mejor aproximación a los valores económicos de las empresas. Esto ha propiciado que, en las Normas Internacionales de Información Financiera (NIIF), haya adquirido relevancia el modelo del valor razonable, según el cual los activos y pasivos se miden por sus valores <br />de mercado. La adopción de este modelo significa la instrumentación de la teoría del valor de la empresa y una mayor aproximación de la contabilidad a la teoría de las finanzas, cuyos beneficios deben sopesarse con los riesgos asociados a la obtención de cifras contables a partir de precios de mercado y de supuestos acerca de eventos esperados en el futuro. Este artículo expone los alcances de la adopción de ese modelo en el esfuerzo por lograr que los estados financieros representen fielmente las realidades económicas de las empresas.</p><p> </p><p><strong>Abstract </strong></p><p> </p><p>Since many years ago in the Accounting academic and professional circles there is a debate about the importance that the financial statements represent the assets and liabilities according with their market values, in order to get a better approximation to the economic values of the enterprises. Because of this the fair value model has gained relevance in the International Financial Reporting Standards (IFRS). According with this model, the assets and liabilities are measured by their market values. The adoption of <br />this model means the implementation of the theory of the firm and a greater approximation the Accounting to the Financial Theory, whose benefits must be weighted with the risks of getting accounting figures by using market prices and assumptions about future events. This paper expounds the scopes of adopting this model in the effort to assure that the financial statements represent faithfully the economic realities of the enterprises.</p>

scholarly journals Variables Affecting ZNT Implementation in Communities Semarang City

2019 ◽  
Author(s):  
Galuh Wardina ◽  
Iwan Rudiarto
Keyword(s):  
Market Prices ◽  
Land Prices ◽  
Market Values ◽  
Central Java ◽  
The People ◽  
Land Valuation ◽  
The Government ◽  
Internal And External Factors ◽  
The City ◽  
Central Java Province

The Land and Building Tax Imposition Base (NJOP) is used to determine the basis for Land and Building Taxes. But in reality, NJOP sometimes does not match fair market values. By land valuation experts, a method was formed which approached real land prices, namely the Land Value Zone (ZNT). ZNT in its application and development raises diverse responses. For that, we need to study variables affecting the implementation of ZNT in the community. Therefore, the city of Semarang is considered suitable for case studies on the implementation of ZNT because it is the center of economic activity in Central Java Province. This research is expected to provide benefits regarding the implementation of ZNT as a method to determine the amount of NJOP. The level of acceptance of ZNT implementation in society is measured by 10 variables. The data in this study were obtained using a questionnaire sampling to community. Questionnaire results are then analyzed so as to help further explain statistical results that have been obtained. Facts on the ground show that the people of Semarang City feel the ease and accuracy as well as the fair transparency of market prices for land in ZNT. The analysis results that have been found, there are 3 variables that most influence, namely politics, communication with the parties concerned, and socialization of ZNT. Those improvements are needed on the internal and external factors of the ZNT method and coordination, communication and cooperation between the government and the community.

Real Estate Risk in Russia and Financial Innovations

2016 ◽  
Vol 2016 (6) ◽  
pp. 57-70
Author(s):  
Andrey Matyukhin
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Market Prices ◽  
Economic Agents ◽  
Risk Hedging ◽  
Market Participants ◽  
Financial Innovations ◽  
Negative Effect ◽  
Real Estate Prices ◽  
Market Construction

The article underlines the latest trends in real estate prices in Russia, which helps to record the increasing negative effect of real estate risks on various groups of economic agents. The consequences of negative dynamics in mean real estate market prices could be relaxed by real estate derivatives market construction, which has been unclaimed yet by the market participants due to favorable economic conditions. The article provides the ground for the necessity of real estate risk hedging for various groups of economic agents, viability of real estate derivatives utilization for the purposes of hedging and their application to further financial innovations.

Property prices index numbers and derived indices

2014 ◽  
Vol 32 (2) ◽  
pp. 139-153 ◽  
Author(s):  
Francesca Salvo ◽  
Marina Ciuna ◽  
Manuela De Ruggiero
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Real Estate Market ◽  
Index Numbers ◽  
Market Prices ◽  
Sales Price ◽  
Content Type ◽  
Property Prices ◽  
Innovative Methodology ◽  
Definition Of

Purpose – A useful instrument to understand and examine the inner workings of the property trade is devising index numbers of property prices based on historical sequences of market prices. The present work aims at the definition of index numbers of property prices, proposing an innovative methodology compared with what usually recurs in literature. The purpose of this paper is to discuss these issues. Design/methodology/approach – The analysis proposed, based on the mechanisms of formation of stock indices, investigates the analogies between stock and property information, according to the peculiarities of the property trade, leading to a methodology approach, derived from Simple Price Index Method, able to consider possible anomalies in the collected sample of purchase prices, using weighting coefficients based on reliability coefficients of sale prices of properties. Findings – The novel approach proposed has led to the definition of a original methodology useful to appraise property price index numbers and other derived indicators, effective for interpreting and identifying real estate market dynamics in a given area of study, regarded as a standard estimating methodology applicable to any geographical context and kind of property. Practical implications – Methodology proposed in this work is useful to revalue real estate sales price and to consider presence of anomalous sales price in property samples. Originality/value – The calculation of index numbers of prices is usually based on Simple Price Index Methods. Literature shows large use of different methods, such as Repeat Sales Method, Hedonic Price Method, Repeat Value Model. The present work propose an innovative methodology able to detect the presence of possible anomalous market prices in the representative sample, using an appropriate vector of weights in order to take into account the level of reliability of market data.

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