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This paper aims to identify different organisation modes for international property investments and analyse the rationales for selecting each mode.
Abstract
Purpose
This paper aims to identify different organisation modes for international property investments and analyse the rationales for selecting each mode.
Design/methodology/approach
The paper reports the findings of an interview study conducted among international investors in the Finnish property market.
Findings
The study identifies four main organisation modes for international property investments, the selection of each mode being dependent of the investors' perception of the informational barriers and local nature of the property market. Most of the interviewed investors also apply the same strategy in other markets they invest in, and thus the selection of the organisation mode seems not to be very dependent on the characteristics of the investment market.
Research limitations/implications
The paper analyses the organisation modes and their selection criteria only in the Finnish market.
Practical implications
The study indicates that informational barriers are still of major concern for the investors entering foreign markets. Thus, activities contributing to lowering these barriers would be beneficial for those markets wanting to attract international property investments.
Originality/value
The study is the first to analyse the organisation modes of international property investors.
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Olawumi Fadeyi, Stanley McGreal, Michael McCord and Jim Berry
Office markets and particularly international financial centres over the past decade have experienced rapid financialisation, developments and indeed changes in the…
Abstract
Purpose
Office markets and particularly international financial centres over the past decade have experienced rapid financialisation, developments and indeed changes in the post-global financial crisis (GFC) landscape. Importantly, the volume and types of international capital flows have witnessed more foreign actors and vehicles entering into the investment landscape with the concentration of investment intensifying within key financial centres. This paper examines the interaction of international real estate capital flows in the London, New York and Tokyo office markets between 2007 and 2017.
Design/methodology/approach
Using Real Capital Analytics (RCA) data comprising over 5,700 office property transactions equating to $563bn between 2007 and 2017, the direct global capital flows into the London, New York and Tokyo office markets are assessed using an autoregressive distributed lag (ARDL) approach. Further, Granger causality tests are examined to analyse the short-run interaction of international real estate capital flows into these three major office markets.
Findings
By assessing the relativity of internal to external investments in these three central business district (CBD) office markets, differences in market dynamics are highlighted. The London office market is shown to be highly dependent on international flows and the USA, the foremost source of cross-border investment on the global stage. The cointegration and causality analysis indicate that cross-border real estate investment flows in these markets (and financial centres) show both long- and short-run relationships and suggest that the London office market remains more distinct and the most reliant on international capital flows with a wider geographical spread of investment activities and investor types. In the case of New York and Tokyo, these markets appear to be driven by more domestic investment activity and capital seemingly due to subtle factors pertaining to investor home bias, risk aversion and diversification strategies between the markets in the aftermath of the GFC.
Originality/value
Given the importance of the CBD offices in London, New York and Tokyo as an asset class for institutional investors, this paper provides some insights as to their level of connection and the interaction of the international capital flows into these three major cities.
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Discusses the context for French property investment. Shows how ithas evolved as a result of social, economic and political forces.Considers investment media, investment…
Abstract
Discusses the context for French property investment. Shows how it has evolved as a result of social, economic and political forces. Considers investment media, investment methods and types of investors. Finally examines in depth the phenomenon of ‘mondialisation′ – the increasingly international nature of property investment.
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The purpose of this paper is to provide an account of who forms what market assets by making what market investments in a business network.
Abstract
Purpose
The purpose of this paper is to provide an account of who forms what market assets by making what market investments in a business network.
Design/methodology/approach
To investigate what market investments were made by certain actors into resource interfaces as market assets, the author draws on a case network based on an investigation of the Chilean salmon production network. To this end, the author chose the fish – being the focal object resource in that network – as a point of departure. The author systematically investigates the resource interfaces that this resource has with three other specific resources: feed, fishmeal, and vaccines in a thick case study.
Findings
This study shows that market investments entail committing resources to resource interfaces which turns them into market assets. Resource interfaces as market assets have implications on how we characterize and value resource interfaces. Multilateral resource interfaces become valuable to firms as a result of continuous market investments made into them. This produces different types of resource interfaces, some of which are of mediatory character bridging between distant resources in a network.
Research limitations/implications
This study focuses on the market investments being made to create and sustain market assets. Of course such assets are linked to a firm’s internal assets which this study do not investigate. In addition, this study emphasizes the commitment of resources into existing resource interfaces, the ensuing creation of market assets, and its use and value for firms and downplays a firm’s need to account for market investments and the market investments required to create a new resource interface.
Practical implications
As resource interfaces are valuable market assets, it is important to understand the functioning of different types of resource interfaces so as to exploit their potential as efficient as possible. This paper shows that some resources act as bridging resources connecting the borders of two indirectly related resources. Controlling bridging resources becomes an essential task for managers in business networks.
Social implications
Understanding the market investments into resource interfaces enables firms to become more skilled in organizing and controlling networks. These networks can play important roles in the economic development of society and create improved societal conditions for people, organizations, and economies.
Originality/value
By combining a market investment and market asset conceptualization of investments in networks with a resource interaction approach, this paper provides an enhanced understanding of resource interfaces as market assets. Theoretical implications for our understanding of resource interfaces – its value and character – are discussed.
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Lukasz Prorokowski and Paulina Roszkowska
The purpose of this paper is to examine the extent to which Central European emerging stock markets (focusing on Poland) have been affected by the recent international…
Abstract
Purpose
The purpose of this paper is to examine the extent to which Central European emerging stock markets (focusing on Poland) have been affected by the recent international financial crisis, and how the current investment climate (barriers, risks, challenges and opportunities) influences appetite for investments in Polish equities. In doing so, the study aims to report timely findings in relation to the determinants of the safety and profitability of international portfolio diversification to the Polish stock market.
Design/methodology/approach
Based on qualitative empirical research, the authors analyse the differences between the foreign (UK) and domestic (Poland) investors' views on equity investments in Poland. The study builds on questionnaires and interviews with practitioners associated with the Polish stock market.
Findings
The authors report that the global financial crisis influenced changes to domestic and international investors' appetite for risk related to equity investments in emerging stock markets: investors are more prudent about emerging markets but the Polish stock market has shown substantial growth potential and positively distinguished itself from other Central European stock exchanges; particular types of investment risks associated with equity investments in the Polish stock market have abated. Polish equities are an attractive component of the international portfolio diversification, provided that trading strategies are adjusted to the contemporary investment environment.
Originality/value
This paper addresses the absence of the academic literature devoted to the analysis of equity investments in the contemporary Central European emerging stock markets. The authors discuss the differences in appetite for risk between the UK and Polish investors and assumptions about investments in Poland. The authors also contribute to the international debate on investor protection and regulations that can improve investment processes.
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Haruna Babatunde Jaiyeoba and Razali Haron
The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia.
Abstract
Purpose
The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia.
Design/methodology/approach
The study adopted semi-structured interviews to solicit an understanding of six retail investors on investment decision behaviour in Malaysia. Content analysis technique was used to analyse the data and verbatim texts were applied in discussing the emergent themes.
Findings
The findings indicate that retail investors in Malaysia are patriotic in nature, and their investment decisions are based on feeling of comfort or convention rather than quantitative analysis. They rely so much on their findings rather than third party’s views for making investment decisions. They were influenced by the psychological biases because they herd on the information. Challenges are solved through experience, and they believe that proper understanding of the financial and economic settings of the country can enhance better investment decision-making.
Research limitations/implications
A more detailed investigation on the investors’ behaviour with more samples may expand our understanding of this issue. Future studies need to examine the investment decision behaviour with more samples.
Practical implications
First, it will prepare hit and run investors to be more ready to remain in the market and improve their skills on how to make sound investment decisions. Second, it helps the investors to know that knowledge of traditional finance theory is not sufficient to excel in stock market, and, hence, they need to know more about behavioural finance. Third, investors are exposed to various reasons as to why investment decisions deviate from expected and different means of solving the challenges faced in making investment decision within the Malaysian context. Fourth, investors are reminded that understanding the financial settings before investing is essential. Finally, policy makers in stock market are able to understand the retail investors’ behaviour.
Originality/value
This study examines the experience and prospect to remain as stock market investors, their priorities in selecting the right company for investment purposes, the kind of information seeking from third parties, the challenges faced by them and other important considerations in investment decisions. These have never been examined together in this way in investigation of retail investors’ investment behaviour.
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The asset allocation decision for a pension portfolio needs to consider several, sometimes conflicting, aspects. Most pension managers use models and processes that are…
Abstract
Purpose
The asset allocation decision for a pension portfolio needs to consider several, sometimes conflicting, aspects. Most pension managers use models and processes that are developed for the traditional asset classes for analyzing this problem. The purpose of this paper is to investigate how real estate is included in this process, for what purpose and how the real estate portfolio is constructed.
Design/methodology/approach
Seven individuals responsible for the asset allocation process were interviewed, and their responses were analyzed with regards to organizational options and their real estate strategy.
Findings
It was found that real estate is held for three different purposes, risk diversification, inflation hedging/liability matching and return enhancement and that the allocation has increased over time. The allocation strategy has evolved at least in part in conjuncture with the organizational structure set in place to overcome real estate market frictions.
Research limitations/implications
The interviews were geographically limited to pension funds domiciled in Sweden and Finland.
Practical implications
It is concluded that the organizational capabilities of the pension fund of handling real estate is an important consideration for the ensuing real estate portfolio.
Originality/value
The originality of this paper lies in that it is based on interviews with individuals who are responsible for the asset allocation decision at large pension funds. The findings of the paper identify areas of interest for future research.
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The treatment of marketing expenditures will influence how the firm makes decisions. This paper discusses the relationship between the firm's marketing effort and the…
Abstract
The treatment of marketing expenditures will influence how the firm makes decisions. This paper discusses the relationship between the firm's marketing effort and the firm's marketing investment. Current practice in most companies dictates that marketing costs are treated as expenses and this leads to marketing executives lacking the required information for effective decision making. Often the wrong pressures are placed on the marketing function resulting in poor marketing decisions and consequently affecting the financial performance of the firm.
Janell D. Townsend, S. Tamer Cavusgil and Roger J. Calantone
Understanding the impact of marketing-related investments on market-based assets is a fundamental issue for marketers. In this study we address the relationship between…
Abstract
Understanding the impact of marketing-related investments on market-based assets is a fundamental issue for marketers. In this study we address the relationship between product-related investments and communication-related efforts, with respect to a basic intangible market-based asset: consumer-based dimensions of brand equity. We draw from a longitudinal study of pre-purchase brand attribute data derived from consumer panels, conducted within the context of the U.S. automotive market. Brand equity dimensions are statistically related to marketing investments and contextual factors of “region of origin” and “global brand reach,” employing a seemingly unrelated regression model. The results reveal a positive effect of communication-related investments, as measured by annual advertising expenditures, on all dimensions of brand equity except luxury image. Product-related investments, as indicated by a brand's innovativeness, positively affect brand image but negatively affect perceived economy. Region of origin and global brand reach have mixed effects on the consumer-based dimensions of brand equity.
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Erika Sydney-Hilton and Natalia Vila-Lopez
The relevance of marketing to explain financial success has been seldom investigated. In this scene, the purpose of this study is to analyze whether the correlations…
Abstract
Purpose
The relevance of marketing to explain financial success has been seldom investigated. In this scene, the purpose of this study is to analyze whether the correlations between four marketing strategies and seven financial measures has increased (or not) over time.
Design/methodology/approach
To reach these objectives, secondary information about 500 companies operating in the USA was analyzed. This information was listed on the US Standard & Poor’s 500-company index (SPX Charts, 2019). Data were collected for eight different periods of time (from year 2009 to year 2016) and for 11 different industries. Multiple regression analysis and ANOVA tests were used.
Findings
First, two marketing investment decisions out of four (brand value and price) have displayed a significant and incremental change over time. The other marketing investment decisions (brand rank, communication and service) have not increased their importance with time. Second, in two investment decisions (brand value and price), correlations found with financial measures have strengthened over time.
Research limitations/implications
This study was conducted on large US public companies. Studying other sectors within the USA such as small capitalization firms or privately owned firms can lead to future discoveries, while looking at similar companies in different countries, could provide compare and contrast opportunities. Second, no qualitative data were obtained in this study, leaving potential for gaps in knowledge that could be remedied by qualitative analysis. Third, given that all marketing investment was considered of equal value in the present paper, future research could be done to avoid this limitation.
Practical implications
From a practical approach, the authors want to eliminate the dissonance between marketing and accounts as far as the lack of “marketing accountability” (Webster et al., 2003, p. 27) has lead marketing to “lost its seat at the table” (Kumar and Shah, 2009, p 119). That is, they want to call the attention to the relevance of investing in diverse marketing tools at the same time from an accounting approach, showing how these tools can be used to improve financial results. Kumar (2015) explains how, as companies strive to cut costs, meet annual revenue targets and maximize efficiency, less attention is being placed on the importance of forward-looking marketing strategies. The authors would like to show how favorable financial results are linked to diverse marketing investments. As Arslanagic-Kalajdzic et al. (2018) have underlined, there is a need for building, improving and sustaining marketing accountability within the firm and its relevance for value.
Originality/value
From an academic approach, the added value is to adopt a longitudinal perspective to analyze the evolution of marketing investment over time and its interesting results, given that, until now, most of the studies have focused on a specific period (Anderson et al., 2004; Fornell et al., 2006). Previous works have scarcely noticed that by better understanding how marketing investments impact regularly used financial variables, stakeholders can better assess the inner workings of a company (Ambler et al., 2001). Bridging this academic gap from a longitudinal perspective will enable marketing workers and accounting workers to act cohesively to cultivate successful companies.
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