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1 – 10 of over 17000
Article
Publication date: 19 September 2022

Ruihe Yan and Xiang Gong

Building upon uncertainty reduction theory, this work aims to explore how four uncertainty reduction factors (i.e. online property review, online textual description, online…

Abstract

Purpose

Building upon uncertainty reduction theory, this work aims to explore how four uncertainty reduction factors (i.e. online property review, online textual description, online visual description and online instant messenger) mitigate property quality uncertainty and property fit uncertainty, which further influence Airbnb use intention.

Design/methodology/approach

This work tests the proposed research model using a structural equation modeling approach with 335 Airbnb users.

Findings

The findings reveal that the online property review, online textual description, online visual description and online instant messenger can efficiently mitigate property quality uncertainty and property fit uncertainty, which ultimately influence Airbnb use intention.

Research limitations/implications

This study provides useful insights on mitigating property uncertainty in the peer-to-peer (P2P) accommodation platforms. Researchers are encouraged to investigate the boundary conditions that influence the effectiveness of uncertainty reduction strategies in alleviating property uncertainty.

Practical implications

P2P accommodation service providers are suggested to take actionable uncertainty reduction strategies to mitigate property uncertainty in online P2P accommodation platforms.

Originality/value

First, this study advances research on P2P accommodation by identifying two key types of property uncertainty, namely, property quality uncertainty and property fit uncertainty. Second, this study extends research on P2P accommodation by proposing contextualized passive, active and interactive uncertainty reduction strategies in mitigating property uncertainty. Third, this study extends uncertainty reduction theory to the P2P accommodation context. Fourth, this study enriches uncertainty reduction theory by verifying the mediating effects of property quality uncertainty and property fit uncertainty.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 21 June 2023

Bo Wang and Ting Jia

Positive reviews can enrich the favorable impression of peer-to-peer accommodation products, and seizing this impression is vital for hosts. This study aims to focus on hosts’…

Abstract

Purpose

Positive reviews can enrich the favorable impression of peer-to-peer accommodation products, and seizing this impression is vital for hosts. This study aims to focus on hosts’ response strategies to positive reviews and their effects.

Design/methodology/approach

This study categorizes hosts’ response strategies to positive reviews into cordial and tailoring responses. This study empirically analyzes the influence of these response strategies on subsequent review volumes using 1,283 valid listings and zero-inflation negative binomial regression models.

Findings

While hosts use cordial responses more, tailoring responses are more likely to drive subsequent reviews. In addition, when the host chooses entirely shared accommodation or sets a high price, the facilitating effect of the two response strategies on subsequent reviews weakens.

Research limitations/implications

This study enriches the knowledge system on managerial responses by proposing two specific response strategies to positive reviews that can be adopted by peer-to-peer accommodation hosts and by finding the promoting impact of these strategies on subsequent review volumes.

Practical implications

This study recommends that peer-to-peer accommodation hosts adopt cordial and tailoring responses to encourage subsequent consumer reviewing behavior.

Originality/value

As an early attempt to explore hosts’ responses to positive reviews and their impacts on subsequent review volumes, this study provides valuable insights into further research on positive review response strategies in the digital space.

Details

International Journal of Contemporary Hospitality Management, vol. 36 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 25 September 2019

Dianwicaksih Arieftiara, Sidharta Utama, Ratna Wardhani and Ning Rahayu

This study aims to examine the contingent fit between business strategies and environmental uncertainty and its effect on corporate tax avoidance.

1979

Abstract

Purpose

This study aims to examine the contingent fit between business strategies and environmental uncertainty and its effect on corporate tax avoidance.

Design/methodology/approach

This study uses a two-stage linear regression method comprising multinomial logistic regression and panel data regression.

Findings

This study finds that under highly uncertain conditions, the contingent fit of prospector strategy is higher than the contingent fit of other two strategies, i.e. defender and analyzer strategy. The study fails, however, to demonstrate that under highly uncertain conditions, this study finds that under highly uncertain conditions the contingent fit of a “prospector” strategy is higher than for “defender” and “analyzer” strategies. The study fails, however, to demonstrate that under highly uncertain conditions the contingent fit of a defender strategy is higher than that of an analyzer strategy. The study also finds that the contingent fit between prospector strategy and environmental uncertainty has a positive effect on tax avoidance, and this effect is higher than for the misfit strategies. Moreover, in such environments the fit level of a defender strategy has a negative effect on tax avoidance while environmental uncertainty has a positive effect on tax avoidance.

Research limitations/implications

This study estimated competition uncertainty using the Herfindahl index to measure competitive intensity in an industry. However, only the data from public listed companies was used due to a lack of data availability for non-public companies. Consequently, further study is recommended to include the total number of companies within an industry as a proxy of competitive intensity.

Practical implications

The results implied that managers, not only in Indonesia but also in other countries as well, specifically emerging countries (generally the environmental uncertainty in emerging countries is high) should consider the contingent factors when making business strategy decisions. Managers must be aware of the contingent fit with environmental uncertainty, and therefore, must assess external conditions prudently. Furthermore, the results of this study showed that managers should pay more attention to the effects of their decisions on corporate tax avoidance, while aligning their business strategy decisions with corporate tax planning strategy to obtain an optimal outcome for the company.

Social implications

The Directorate General of Taxes and Board of Fiscal Policy, as regulators, need to comprehend environmental uncertainty to issue various policies that can ease the burden of the taxpayer to remain in business, particularly during the turbulence environment so that can prevent the companies doing illegal practices and will eventually reduce the number of tax avoidance.

Originality/value

This study developed alternative measure of tax avoidance, which is tax avoidance latent variable score (TAXLVS). The TAXLVS was derived from confirmatory factor analysis of previous existing tax avoidance measurements. This study is also the first that analyzes the effect of business strategy on tax avoidance using contingency approach.

Details

Meditari Accountancy Research, vol. 28 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 1 February 2000

Michael Mallinson and Nick French

There will always be a degree of uncertainty in any valuation, but it should be incumbent upon the valuer to report “abnormal uncertainty”. This arises when some particular…

4761

Abstract

There will always be a degree of uncertainty in any valuation, but it should be incumbent upon the valuer to report “abnormal uncertainty”. This arises when some particular condition of the market or the property leads to the valuer being unable to value with the confidence of accuracy which might normally be expected. Abnormal uncertainty now features in the RICS Appraisal and Valuation Manual and later in this paper we consider how the valuer might identify and measure the degree of abnormal uncertainty. But this paper is predominantly concerned with “normal uncertainty”, which hereafter we will term only as “uncertainty”. The thesis of this paper is that uncertainty is a real and universal phenomenon in valuation. The sources of uncertainty are rational and can be identified. They can be described in a practical manner, and, above all, the process of identification and description will greatly assist many clients, and will improve the content and the credibility of the valuer’s work. Common professional standards and methods should be developed for measuring and expressing valuation uncertainty (Recommendation 34, Mallinson Report, RICS, 1994).

Details

Journal of Property Investment & Finance, vol. 18 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

Abstract

Details

Documents from the History of Economic Thought
Type: Book
ISBN: 978-0-7623-1423-2

Article
Publication date: 5 September 2016

David Jansen van Vuuren

The purpose of this paper is to compare the value outcomes of the cost approach to the DCF profits method when valuing specialised property under different scenarios as a test for…

2002

Abstract

Purpose

The purpose of this paper is to compare the value outcomes of the cost approach to the DCF profits method when valuing specialised property under different scenarios as a test for choice of method or model uncertainty; and to quantify valuation uncertainty under each scenario and to argue for an increasing adoption of the profits method of valuation.

Design/methodology/approach

A qualitative case study approach was used to analyse four physical valuations performed in practice under four specific scenarios, namely, a business-as-usual scenario, an underperforming business scenario, an expanding capacity scenario and a combined business-as-usual funding a start-up joint venture scenario.

Findings

The cost approach relative to the DCF profits approach consistently under-values specialised property under business-as-usual and business expanding scenarios while it over-values in instances of underperforming business scenario.

Practical implications

Financial institutions that predominantly uses or accepts the cost approach for valuing specialised property should consider adopting the DCF profits approach as the default approach when valuing for mortgage lending purposes. Business owners of specialised properties should contract practitioners knowledgeable and skilled in the application of the DCF profits method.

Originality/value

This paper quantifies choice of method or model uncertainty of four different scenarios of specialised properties where both the cost approach and DCF profits methods of valuation were employed. It suggests the adoption of the DCF profits method as the default method of valuation for specialised property.

Details

Journal of Property Investment & Finance, vol. 34 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 14 August 2020

Sadik Lafta Omairey, Peter Donald Dunning and Srinivas Sriramula

The purpose of this study is to enable performing reliability-based design optimisation (RBDO) for a composite component while accounting for several multi-scale uncertainties

Abstract

Purpose

The purpose of this study is to enable performing reliability-based design optimisation (RBDO) for a composite component while accounting for several multi-scale uncertainties using a large representative volume element (LRVE). This is achieved using an efficient finite element analysis (FEA)-based multi-scale reliability framework and sequential optimisation strategy.

Design/methodology/approach

An efficient FEA-based multi-scale reliability framework used in this study is extended and combined with a proposed sequential optimisation strategy to produce an efficient, flexible and accurate RBDO framework for fibre-reinforced composite laminate components. The proposed RBDO strategy is demonstrated by finding the optimum design solution for a composite component under the effect of multi-scale uncertainties while meeting a specific stiffness reliability requirement. Performing this using the double-loop approach is computationally expensive because of the number of uncertainties and function evaluations required to assess the reliability. Thus, a sequential optimisation concept is proposed, which starts by finding a deterministic optimum solution, then assesses the reliability and shifts the constraint limit to a safer region. This is repeated until the desired level of reliability is reached. This is followed by a final probabilistic optimisation to reduce the mass further and meet the desired level of stiffness reliability. In addition, the proposed framework uses several surrogate models to replace expensive FE function evaluations during optimisation and reliability analysis. The numerical example is also used to investigate the effect of using different sizes of LRVEs, compared with a single RVE. In future work, other problem-dependent surrogates such as Kriging will be used to allow predicting lower probability of failures with high accuracy.

Findings

The integration of the developed multi-scale reliability framework with the sequential RBDO optimisation strategy is proven computationally feasible, and it is shown that the use of LRVEs leads to less conservative designs compared with the use of single RVE, i.e. up to 3.5% weight reduction in the case of the 1 × 1 RVE optimised component. This is because the LRVE provides a representation of the spatial variability of uncertainties in a composite material while capturing a wider range of uncertainties at each iteration.

Originality/value

Fibre-reinforced composite laminate components designed using reliability and optimisation have been investigated before. Still, they have not previously been combined in a comprehensive multi-scale RBDO. Therefore, this study combines the probabilistic framework with an optimisation strategy to perform multi-scale RBDO and demonstrates its feasibility and efficiency for an fibre reinforced polymer component design.

Details

Engineering Computations, vol. 38 no. 3
Type: Research Article
ISSN: 0264-4401

Keywords

Article
Publication date: 1 December 2004

Nick French and Laura Gabrielli

Valuation is often said to be “an art not a science” but this relates to the techniques employed to calculate value not to the underlying concept itself. Valuation is the process…

12196

Abstract

Valuation is often said to be “an art not a science” but this relates to the techniques employed to calculate value not to the underlying concept itself. Valuation is the process of estimating price in the market place. Yet, such an estimation will be affected by uncertainties. These input uncertainties will translate into an uncertainty with the output figure, the valuation. The degree of the uncertainties will vary according to the level of market activity; the more active a market, the more credence will be given to the input information. In the UK at the moment the Royal Institution of Chartered Surveyors (RICS) is considering ways in which the uncertainty of the valuation can be conveyed to the use of the valuation, but as yet no definitive view has been taken apart from a single Guidance Note (GN5). One of the major problems is that valuation models (in the UK) are based on comparable information and rely on single inputs. They are not probability‐based, yet uncertainty is probability driven. This paper discusses the issues underlying uncertainty in valuations and suggests a probability‐based model (using Crystal Ball) to address the shortcomings of the current model.

Details

Journal of Property Investment & Finance, vol. 22 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 September 2006

David Lorenz, Stefan Trück and Thomas Lützkendorf

The purpose of this paper is to propose and discuss practical approaches on how to address risk and uncertainty within valuation reports, particularly when there is only…

4632

Abstract

Purpose

The purpose of this paper is to propose and discuss practical approaches on how to address risk and uncertainty within valuation reports, particularly when there is only insufficient comparable transaction evidence available.

Design/methodology/approach

A four stage approach to property valuation is proposed that can be particularly useful if there is insufficient comparable transaction evidence available: Identifying, measuring and expressing risk by making use of property rating approaches. Transforming risk into risk premia for calculating the yield on a risk free basis by partially making use of models of risk and return usually applied in finance. Simulating risk premia (since there is great deal of uncertainty involved in determining these premia) by making use of a statistical method commonly referred to as Monte Carlo Simulation. Using the derived yield's probability distribution in combination with further probability distributions for other valuation input variables (e.g. market rent) to calculate a range of possible outcomes of Market Value as well as a number of statistical measures that can be indicative of the valuer's perceived uncertainty regarding the valuation assignment.

Findings

The empirical part shows that due to data limitations determining idiosyncratic risk premia for property assets is not yet possible. This significantly hampers the development of robust yield pricing models and reinforces the need to create databases including information on both individual property returns and associated building characteristics.

Practical implications

The paper postulates that there are few (if any) rational reasons for valuers not to use rating and simulation approaches as an indispensable element of the valuation process.

Originality/value

A valuation approach that allows simultaneously addressing risk and uncertainty as well as sustainability issues within commercial property valuation practice is proposed.

Details

Journal of Property Investment & Finance, vol. 24 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 3 April 2017

James R. DeLisle and Terry V. Grissom

The purpose of this paper is to investigate changes in the commercial real estate market dynamics as a function of and conditional to the shifts in market state-space environment…

1006

Abstract

Purpose

The purpose of this paper is to investigate changes in the commercial real estate market dynamics as a function of and conditional to the shifts in market state-space environment that can influence agent responses.

Design/methodology/approach

The analytical design uses a comparative computational experiment to address the performance of property assets in the current market based on comparison with prior structural patterns. The latent variables developed across market sectors are used to test agent behavior contingent on the perspectives of capital asset pricing conditionals (CAPM) and a behavioral momentum/herd construct. The state-space momentum analysis can assist the comparative analysis of current levels and shifts in property asset performance given the issues that have arisen with the financial crisis of 2007-2009.

Findings

An analytic approach is employed framed by a situation-dependent model. This frame considers risk profiles characterizing the perspectives and preferences guiding a delineated market state. This perspective is concerned with the possibility of shifts in market momentum and representativeness conditioning investor expectations. It is observed that the current market (post-crisis) has changed significantly from the prior operations (despite the diversity observed in prior market states). The dynamics of initial findings required an additional test anchored to the performance of the general capital market and the real economy across time. This context supports the use of a modified CAPM model allowing the consideration of opportunity cost in a space-time dynamic anchored with the consideration of equity, debt, riskless asset and liquidity options as they varied for the representative agents operating per market state.

Research limitations/implications

This paper integrates neoclassical and behavioral economic constructs. Combines asset pricing with prospect theory and allows the calculation of endogenous time-preferences, risk attitudes and formulation and testing of hyperbolic discounting functions.

Practical implications

The research shows that market structure and agent behavior since the financial crisis has changed from the investment and valuation perspectives operating as observed and measured from 1970 up to 2007. In contradiction to the long-term findings of Reinhart and Rogoff (2008), but in compliance with common perspectives and decision heuristics often employed by investors, this time things have changed! Discounting and expected rates of return are dynamic and are hyperbolic and not constant. Returns and investment for property assets are situational (market state-space specific) and offer a distinct asset class, not appropriately estimated by many of the traditional financial models.

Social implications

Assist in supporting insights to measure in errors and equations that result in inefficient resource allocation and beta discounting that supports the financial crisis created by assets subject to long-term decision needs (delta function).

Originality/value

The paper offers a combination and comparison of neoclassic asset pricing using a modified CAPM (two-pass) approach within the structural frame of Kahneman and Tversky’s (1979) prospect theory. This technique allows the consideration of the effects of present bias, beta-delta functions and the operation of the Allais Paradox in market states that are characterized by gains and losses and thus risk aversion and risk seeking behavior. This ability for differentiation allows for the development of endogenous time-preferences and hyperbolic discounting factors characteristic of commercial property investment.

Details

Journal of Property Investment & Finance, vol. 35 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

1 – 10 of over 17000