Impacts of information asymmetry and policy shock on rental and vacancy dynamics in retail property markets

Yang, Linchuan; Chau, Kwong Wing; Chen, Yang

doi:10.1016/j.habitatint.2021.102359

Cited by 13 publications

(8 citation statements)

References 43 publications

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“…Those with adequate information are typically in a favourable position, whereas those lacking information are in a relatively disadvantageous position. The theory holds that sellers in the market have more information about goods than buyers, the party with considerable information can benefit from the market by passing reliable information to the poorly informed party, a buyer and seller with limited information will struggle to obtain information from the other, and the display of market signals can compensate for the problem of information asymmetry to a certain extent [3][4][5][6]. Information asymmetry is prevalent in the market.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Did the Inclusion of China’s A-Shares in the MSCI Index Improve the Information Content of Listed Firms? Analysis Based on Stock Price Synchronisation and Environmental Social Governance

2022

Wireless Communications and Mobile Computing

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Chinese A-shares were officially included in the Morgan Stanley Capital International (MSCI) Emerging Markets Index from June 2018. The inclusion of the A-share market into the MSCI Index is one of the most influential events in the opening up of the capital market of China. However, China’s A-share market has an imperfect system compared with that of developed countries. Stock price synchronisation is more serious in China than in developed countries, and Environmental Social Governance (ESG) disclosures are imperfect. Excessive stock price synchronicity can affect the information content of stock prices, and imperfect ESG disclosures are not conducive to the investment decisions of investors and thus not conducive to the price mechanism for adjusting the market. From the perspective of stock price synchronisation and ESG disclosure, this study discusses the impact of the exogenous event of the inclusion of A-shares in the MSCI Index on China’s capital market. Based on data of listed firms from 2011 to 2019, this study determines whether MSCI target stocks have high stock price information content and explores the ESG disclosure level based on a difference-in-differences (DID) model. In addition, this study conducts a parallel trend hypothesis test and propensity score matching (PSM) to test the robustness of the results. Empirical results show that the inclusion of A-shares in the MSCI Index increased the stock price information content and reduced the stock price synchronisation of MSCI target stocks. At the same time, this study tests the quality of the ESG information disclosure of A-shares after their inclusion in the MSCI Index and finds that the level of disclosure of the underlying stocks improved. This finding indicates that the inclusion of A-shares in the MSCI Index plays a role in improving the quality of ESG disclosure through information channels. The research conclusions have important implications for the active promotion of the expansion of the MSCI Index and further opening up of the capital market of China. In addition, the conclusions can provide a reference for subsequent MCSI decision-making and insights into the capital markets of other emerging-market countries.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Information asymmetry theory Those with adequate information are typically in a favourable position, whereas those lacking information are in a relatively disadvantageous position. [3][4][5][6] Signal transmission theory…”

Section: Theorymentioning

confidence: 99%

Did the Inclusion of China’s A-Shares in the MSCI Index Improve the Information Content of Listed Firms? Analysis Based on Stock Price Synchronisation and Environmental Social Governance

2022

Wireless Communications and Mobile Computing

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“…The location and structural quality of the building has a big impact on the appreciation of the housing properties [37]. When there is information about the dwelling's quality index and the possibility to engage in networking in the neighbourhood, the individuals are willing to pay higher prices [38].…”

Section: Rooms' Sizes Layout and The Quality Of The Buildingmentioning

confidence: 99%

“…While sellers highlight the importance of the easiness to park and the elevator, buyers focus on the building's quality, namely, on the location of the staircase (to avoid unwanted noises) and on the building's rooftop. These items were also mentioned in [25,36,37]. Thus, there is evidence of information asymmetry because what is valued by the sellers is different from what is focused by the clients.…”

Section: Comparative Analysis Of the Determining Factors In The Choice And Sale Of Apartmentsmentioning

confidence: 99%

Comparative Analysis of the Importance of Determining Factors in the Choice and Sale of Apartments

Santos

Tavares

et al. 2021

Sustainability

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The motivation to compare the importance that buyers and sellers give to the diverse characteristics of apartments is its pertinency to grasping the housing market. The objective of this article is to compare the determining factors in the choice and sale of apartments among the potential buyers and sellers. During a sale, the realtors exhibit the dwellings’ positive characteristics, the so-called amenities. The homebuyers must analyse the deal in a rational and well-weighed way, striving to know its characteristics to reduce the information asymmetry. The study focuses on two distinct samples, with the common goal of transacting housing. One of the samples is composed of individuals who are looking for apartments, and the other one of individuals who are selling apartments, both being collected in mainland Portugal. It was verified that there are statistically significant differences between buyers and sellers. Buyers give more importance to certain rooms and the inexistence of negative externalities near their future residence. Sellers emphasise positive externalities and parking spots. This study is expected to contribute to the increase in scientific knowledge on the housing market and to the decrease of the information asymmetry between sellers and buyers. Knowing the importance that buyers and sellers give to the main different factors in the Portuguese real estate market constitutes an advancement of knowledge in this area.

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“…Due to individual differences, everyone has diverse requirements, budgets and options for renting a house [7]. For the moment, the situation of information asymmetry between tenants and landlords in China's rental market is particularly prominent [8], which leads to an imbalance between supply and demand. Therefore, building a feasible rental price prediction model through rental market data is a rigid demand in the current rental industry.…”

Section: Introductionmentioning

confidence: 99%

Prediction and Analysis of Rental Price using Random Forest Machine Learning Technique Take Shanghai and Wuhan for example

Hu¹,

Huang²,

Li³

2023

Advances in Computer Science Research

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With the rapid development of China's real estate market, the real estate industry has become a significant part of Chinese national economy. However, the high housing prices in the first-tier and new first-tier cities have forced many young people to turn their attention to the rental market, setting off an upsurge of housing rental. Based on the random forest model, this paper selects two cities, Shanghai and Wuhan, to study the price trend of the housing rental market and its influencing factors. Finally, it is found that the random forest regression model has no significant effect on the rental forecast in Shanghai. It may be that for a highly modernized first-tier city, the variables selected in this paper are not enough to fully explain the rental price. The prediction effect of rental price in Wuhan is significantly better, among which the characteristics of urban area and housing itself have a great impact on rental price. This research can serve as a reference for future researchers in the housing rental market, while helping landlords and tenants make optimal choices.

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Impacts of information asymmetry and policy shock on rental and vacancy dynamics in retail property markets

Cited by 13 publications

References 43 publications

Did the Inclusion of China’s A-Shares in the MSCI Index Improve the Information Content of Listed Firms? Analysis Based on Stock Price Synchronisation and Environmental Social Governance

Did the Inclusion of China’s A-Shares in the MSCI Index Improve the Information Content of Listed Firms? Analysis Based on Stock Price Synchronisation and Environmental Social Governance

Comparative Analysis of the Importance of Determining Factors in the Choice and Sale of Apartments

Prediction and Analysis of Rental Price using Random Forest Machine Learning Technique Take Shanghai and Wuhan for example

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