To read this content please select one of the options below:

Client influence or the valuer's behavior? An empirical study of listed companies' valuation in Taiwan

Fong-Yao Chen (Department of Land Economics, National Chengchi University, Taipei, Taiwan)
Michael Y. Mak (School of Architecture and Built Environment, The University of Newcastle, Newcastle, Australia)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 14 November 2023




Valuers should independently assess market value. The purpose of this article is to analyze whether the valuation behavior remains independent when commissioned by publicly listed companies in Taiwan.


This study used both quantitative and qualitative methods. Quantitative data analysis was used to examine the estimated premium ratio and estimated divergent ratio with the independent sample t test and Wilcoxon-Mann-Whitney test. To complement and validate the quantitative analysis, open-ended questionnaires were conducted, providing additional insights into the research findings.


The results showed that there is a significant difference in estimated valuations commissioned by representatives of buyers and sellers, and the estimated premium ratios commissioned by representatives of buyers were higher than those of sellers. Furthermore, the open-ended questionnaires results indicate that these findings may be influenced by clients for less experienced appraisers. However, for senior appraisers, this is seen as an action to gain a better understanding of the valuation purpose and always within a reasonable price range. In addition, client influence is not a static factor; it may transform into the valuer's behavior as the appraiser's experience grows and deepens.

Practical implications

It is difficult to obtain valuation reports commissioned by representatives of both buyers and sellers for the same property transactions. In this study, data were obtained from the Market Observation Post-System (MOPS) in Taiwan. As valuation reports could not be obtained, estimated valuations and transaction prices are used to calculate estimated premium ratio and estimated divergent ratios.


Previous investigations of the client effect have been conducted using qualitative methods including questionnaire surveys, in-depth interviews and experimental design. However, these studies are subject to moral hazard. This study may be the first study that has access to data on valuations for both buyers and sellers in such a formal setting.



Chen, F.-Y. and Mak, M.Y. (2023), "Client influence or the valuer's behavior? An empirical study of listed companies' valuation in Taiwan", Journal of Property Investment & Finance, Vol. ahead-of-print No. ahead-of-print.



Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

Related articles