Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited
Although we often run themed issues, sometimes the timing of the acceptance of the papers forms a theme of their own through synchronicity. In this issue, three of the four papers address issues related to the capital markets in Asia. Although the data are from the dynamic Asian markets, the inferences and ideas from the research could be applied across the globe.
The paper by Liow and Ooi, examines the influence of corporate real estate on shareholder value using two value-based measures: economic value added and market value added. Their findings challenge the Asian philosophy that there is a competitive advantage in companies owning their own corporate real estate. In Europe and USA, the philosophy is to invest money in the company and not the real estate.
The second paper using Asian data is by Wilson and Zurbruegg that examines whether there was contagion from the Thai securitised real estate market to four other prominent Asia-Pacific property markets during the period between early July and late October 1997. However, it would seem that the impact of the equity markets were more relevant after the October 1997 crash in affecting other financial markets other than the property markets themselves.
The final Asian-based paper looks at asset-backed securitisation. This is an interesting financial innovation whereby debt instruments backed by cash flows generated from income-producing assets are issued for investment purposes in the capital markets.
All three papers are relevant to all market places. They are representative of investor sentiment and activity worldwide. Lessons learned in one market can be applied to other markets and as the world becomes smaller, these insights will become more and more pertinent.