Global Financial Integration and Real Estate Security Returns

Real Estate Economics, Vol. 36, Issue 2, pp. 285-311, Summer 2008

27 Pages Posted: 8 May 2008

See all articles by Ashok Bardhan

Ashok Bardhan

University of California, Berkeley - Haas School of Business

Robert H. Edelstein

University of California, Berkeley - Fisher Center for Real Estate and Urban Economics

Desmond Tsang

McGill University - Desautels Faculty of Management

Multiple version iconThere are 2 versions of this paper

Abstract

Have globalization and increasing economic and financial integration affected the rates of return of publicly traded real estate companies around the world? Using a set of multifactor models for annual data for 946 firms from 16 countries over the sample period, 1995-2002, we estimate the impact of a country's economic openness on returns of publicly traded real estate firms, controlling for the effects of global capital markets, domestic macroeconomic conditions and firm-specific variables. We find that a country's real estate security excess (risk-adjusted) returns are negatively related to its openness. The results are robust across different multifactor model specifications and are a testament to increasing global financial integration and its interplay with the real estate sector.

Suggested Citation

Bardhan, Ashok and Edelstein, Robert H. and Tsang, Desmond, Global Financial Integration and Real Estate Security Returns. Real Estate Economics, Vol. 36, Issue 2, pp. 285-311, Summer 2008, Available at SSRN: https://ssrn.com/abstract=1127946 or http://dx.doi.org/10.1111/j.1540-6229.2008.00214.x

Ashok Bardhan (Contact Author)

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

Robert H. Edelstein

University of California, Berkeley - Fisher Center for Real Estate and Urban Economics ( email )

Haas School of Business
Berkeley, CA 94720-1900
United States
510-643-6105 (Phone)
510-643-7357 (Fax)

Desmond Tsang

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
852
PlumX Metrics