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The purpose of this paper is to estimate the impact of changes in macro-economic conditions going forward, focusing on a change in interest policy, with regard to office letting and investment markets.

For this analysis, the authors constructed two vector-autoregressive models, measuring the response of office rents and capital values in Germany to economic impulses. The authors isolated effects of unique exogenous positive shocks (such as economic growth or interest leaps) on the basis of impulse-response functions in order to understand the complex dynamic interdependence between several economic factors and office performance changes.

The authors initially find a moderately positive development of both office performance components even although supposing an increase in interest level. In terms of capital values, the authors find that they do not drop before 1.5 years after the interest impulse and the negative effect peaks after approximately nine quarters. Furthermore, the reaction to a change in GDP is significantly lower than a reaction to the interest rate, but impulses in other macro-economic factors provoke stronger reactions. Finally, the authors find that a positive interest shock leads to a comparably robust development and economic sustainability in office rents throughout a consideration horizon of 24 quarters.

Estimations are based on observations from a time period containing two rather extraordinary market phases. As they included bubble growth and the low-interest environment, the authors find that certain patterns in both phases neutralize each other when looking at the total time frame. The authors constructed sub-samples to compensate for this. However, the research does not provide to what extent the measured impulse-responses stay forecast-proof, if the market moves into a phase of short-term normalization.

This paper provides insights into estimated impulse-response patterns on a hypothetical sudden increase of several macro-economic determinants. On this basis, the probable reaction to an increase in, for example, the interest rate level can be approximated. Also, the paper provides a fundamental understanding of the economic sustainability of German office properties in terms of their value and rent performance in the case of exogenous shocks.

This paper contains the first vector-autoregressive, impulse-response analysis of office markets in Germany in the context of several macro-economic drivers, including the interest level. It delivers insights into market reaction patterns on the basis of simulated one standard deviation shocks in all included variables.

The purpose of this paper is to quantify the impact of 100-year flood risk on both property rents and values in Germany, exemplified by the market of the historic city of Regensburg, and therefore supports investors in understanding market behavior patterns in both rental and investment context.

The authors construct two generalized additive models for rents and purchasing prices with spatial components and under inclusion of both typical property characteristics (as control variables) and a 100-year flood risk parameter in order to estimate its effect on the rents and property price structure. The authors apply the methodology to a four-year data set of more than 16,500 observations.

The analysis shows that flood risk is a highly significant parameter when estimating both the rent as well as the sales price model. The authors also find that purchase prices for one square meter of living area are, on average, EUR299 lower if the property is located in the flood risk zone. In addition, also rental markets come with a respective, but rather low, discount.

The authors provide transparency to investors in terms of the impact that a flood risk location has on property rents as well as purchasing prices. The study supports investors by providing evidence on reaction patterns in German real estate markets and helps quantifying the financial impact that comes with flood risk in Germany.

This is the first study that aims to empirically test and to quantify the impact of flood risk on property rents and purchasing prices in Germany. Related research has been performed for the USA, Ireland and New Zealand and largely refers to event-driven work or rather conceptual in the context of property valuation.

The purpose of this paper is to explore the determinants of the cross‐market transmission mechanism for terrorist shocks, focusing on two major terrorist events and 68 national stock markets.

The paper generates daily abnormal returns from a three‐factor world asset‐pricing model. Abnormal returns are then regressed on proxies of three transmission mechanisms; a world integration channel, a bilateral integration channel, and a liquidity channel.

The findings indicate that terrorism shocks are diffused cross‐nationally in a non‐uniform manner. This paper finds empirical support for all three channels when considered separately. The bilateral integration channel contains the highest explanatory power since it is found that a third country's trade linkages with the “ground‐zero” country explain about 24 percent of the stock market reaction. A country's share in the world trade, a proxy for the world integration channel, is able to explain about 12 percent of abnormal‐return variation, while the liquidity channel exhibits the lowest predictive power, with the value of stock trading explaining about 6 percent. A hybrid model, where proxies for all channels are included, shows that only the bilateral trade linkages with the “ground‐zero” country are significant determinants of the stock market reaction.

Provides evidence useful for portfolio management and authorities' assessment of terrorist shocks' impact on capital markets.

It is the first study that investigates the determinants of cross‐market transmission of terrorist shocks.

The purpose of this paper is to investigate the role of distinct types of heating technology and their price impact in German residential real estate markets, considering a wide range of other housing market determinants. The authors aim to test and to verify specifically, whether the obsolescence of heating technology leads to a significant price discount and whether higher technological standards (and environmental friendliness) come with a price premium on the market.

The authors create housing market models for rental and sales segments by constructing generalized additive models with explicit multi-layered spatial components. To elaborate a profound and contemporary answer using these models, the authors perform large-sample regression analyses based on more than 400,000 observations covering German residential properties in 2015.

First and foremost, the heating system indeed shows significant explanatory importance for measuring housing rents and purchasing price. Second, the authors find that it makes a difference whether clean “green” technologies are implemented or whether “brown” systems with obsolete technology or fossil energy sources is on hand. Ultimately, the authors conclude that while low energy consumption indeed comes with a price premium, this needs to be interpreted together with the property’s heating type, as housing markets seem to outweigh the “green premium” by “brown discounts” if low energy consumption figures are powered by a certain type of heating technology system.

Aside of a possible omitted variable bias, the main research limitation is constituted by the integration of asking prices in the analysis, as actual transaction prices are not systematically transparent on national level in Germany. Limitations are discussed at the end of the paper.

This work supports investors who face the challenge of making environmental- and energy-related decisions as well as appraisers who deliver financial fundamentals for such. Third, the paper supports both asset managers as well as investment strategists in argumentation pro-environmental investments beyond all ecological necessity.

This paper contributes to the current discussion on climate change and the eclectic role of real estate in this context. The authors deliver evidence on pricing effects as a measure of socioeconomic acceptance of progressive heating technology and environmental friendliness as an imperative of twenty-first century societies.

This is the first study on “green premiums” or “brown discounts” that includes heating technology as a potential and distinct driver of value and rents. It is a contemporary contribution and delivers original information on the quantitative impact of contemporary and anachronistic technology in heating to researchers as well as investors and appraisers.

While store closure announcements frequently appear in newspapers, little is known about the financial impact of store closure decisions on the retailer’s market value. The purpose of this paper is to investigate the stock market reaction to the announcements of retail store closure decisions.

The authors collect data from news articles on store closure announcements in the USA during 1995-2016. Using the four-factor model in an event study, the authors compute the abnormal stock returns for the retail firms due to these announcements.

Based on the authors’ analysis for sample and matching control firms, the abnormal stock returns for store closure announcements are found to be positive overall. The authors find evidence that the positive effects of the announcements are stronger, particularly for the firms which have positive sales growth at the time of the announcements. The authors also report that industry competition acts as a negative moderator in the relationship between announcements and financial impacts.

The authors’ analysis implies the investors’ positive sentiment of store closure announcements as a viable cost-cutting strategy, especially when it is done proactively by better performing retailers. The findings should be useful to the supply chain managers of retail industries in making store closure decisions.

This paper is believed to be the first to address the impact of retail store closure announcements on the stock market. The authors’ approach of categorizing the firms based on their sales growth seems to be the first in the event study literature on corporate restructuring.

This study aims to investigate the behavior of sell-side analysts covering firms that are about to experience breaks in strings of consecutive quarterly earnings increases.

The authors estimate the likelihood of analysts predicting a break by using logit regressions for nearly half a million earnings per share forecasts issued by individual analysts from 1992 to 2017.

The authors find that analysts can predict breaks in earnings strings by issuing less favorable earnings estimates ahead of a break announcement. The probability of detecting a break is higher for longer and more severe breaks, for more skillful analysts and for firms with richer information environments. The authors find that analysts’ warnings are heeded by investors and result in less severe reactions to break announcements.

Breaks in strings of earnings increases are situations in which information asymmetry exists and could be mitigated by information intermediaries such as sell-side analysts. Therefore, it is important to examine whether analysts have any informational advantages or disadvantages over insiders and institutional investors in the quarters prior to breaks in strings and whether they communicate such information to the market in a timely and accurate manner, thus reducing information asymmetry by “leveling the field” across the investment community.

This paper aims to examine whether information search frequency of accounting information is related to the explanatory power of accounting information for firm market value. It also examines whether information content and state of nature can have an impact on this relationship.

The paper is an empirical study using Web search volume data collected from Google Trends and financial and market data collected from Compustat.

This paper finds that investors use Web search engines as an alternative way to search for information they need, search frequency of accounting information is positively related to the explanatory power of accounting information for firm market value, the relationship is found differential between statements and categories within a statement depending on the information content and the relationship is found stronger during economic upturns.

This paper examines 59 accounting items that are cross-firm commonly reported and that have data availability in Compustat. The external validity might be an issue.

This paper is of interest to standard setters, corporate management and academics who wish to understand and improve the value of accounting information in the capital market.

This paper is the first study which provides a comprehensive examination of the impact of investors’ information search volumes on the explanatory power of accounting information. It is also the first paper that intrudes Google Trends search volume data into accounting research.

A company's stock price usually takes a beating when the firm faces a crisis. But a CEO can minimize the effects of a sudden lapse of investor confidence with a wise communication strategy.

The purpose of this case study is to understand effect of Indian ethos, socio‐cultural setup, etc. on growth of family‐based business; impact of ethnicity and genetic intelligence on development of entrepreneurial traits, etc. in family business contexts in India.

The approach takes a single case study on an organized retail firm named Bothra Megabazar Private Limited in Rourkela, India to comprehend the established theories and literature on emergence and spread of business community/class in India known for its own ethos and values as a country. As a part of narrative enquiry method in qualitative research, it collects the narratives of central and peripheral characters in the respective business house through “story telling” and by “restorying” the same, understands and explains the family‐based entrepreneurial journey amidst business dynamics.

The important findings of this case study are manifold. It finds that there is inter‐connectedness of different aspects amounting for success/growth of family business entrepreneurs and enterprises. Some of these factors are deep‐seated Indian ethos and values, multiple family and social networks, joint and undivided family structure, inheritance of family business down the generations, financial backing from members of family and social networks, long standing experience in trade, genetic intelligence across generations, internal capacity building with unique style of leadership and high‐risk appetite, etc.

With its focus on one specific community like Bani(y)as or Marwaris in Indian business society, the case may not justify the understandings on genetic intelligence in case of other communities/class. However, the study elaborates scope of future studies in the same direction.

Practicing managers and research scholars can use this case for understanding of the key success/growth factors behind socio‐culturally guided family‐based business enterprises.

The paper presents a case that is original.

Generally it is assumed that quality improvements are important tools for companies to gain a sustainable competitive advantage. The result of product quality improvements depends, for example on the reaction of competitors. If competitors react intensively and quickly, the outcome of a product quality improvement might be different from what was expected. From an empirical study in The Netherlands, concludes that, in general, the typical reaction of competitors is quite a fast reaction with only one marketing mix instrument. The intensity of the competitive reaction appears to be lower in mature and declining markets than it is in growing markets, and improvements in reliability and service quality aspects appear to be important weapons in quality competition. Service quality improvements are difficult to imitate swiftly. Moreover, they lead to higher market shares for the initiating company. Quality competition based on other quality aspects, like conformance to standards and performance, does not result in a real competitive advantage. For these quality improvements, following a “traditional” competitive pattern of action and, more‐or‐less the same reaction, are quite easy to imitate. They are also needed just to keep up with the leading competitors in the industry. However, they do not lead to long‐term sustainable advantages.