Dogan Tirtiroglu

• Toronto Metropolitan University

Despite its undeniable popularity, the concept of placemaking continues to suffer from a lack of clarity, valid performance indicators and robust data to attest of its effectiveness. Still to this day, understanding what placemaking actually does to people and, in turn, makes them want to do, all the while accounting for its contribution separate f...

Asset and debt management are two essential managerial tasks in any firm. The traditional view holds that asset management is the primary driver of real estate investment trust (REIT) returns for the following reasons: (1) interest tax shields are not a source of incremental value for REITs and (2) the plain tangibility of real estate assets helps...

This paper considers the aggregate profitability performance of the REIT industry. The aggregate performance depends on the underlying microeconomic dynamics within an industry – the growth of individual REITs (the within effect), the reallocation between existing REITs (the between effect), the entry of new REITs (the entry effect), and the exit o...

The larger underpricing (15 percent) in the early years following the inauguration of Borsa Istanbul indicates the importance of investors, intermediaries, and firm insiders learning about the trading and pricing of firms in organized stock markets. The underpricing in recent years (from 2010 to 2020) averages 5 percent. Micro-level uncertainties a...

Quality problems that are known to the seller of an asset, but will become known to the buyer only after the purchase have the potential to frustrate voluntary exchanges. When the problem is subtle or confounded by the extent of buyer inputs, requiring risk-sharing by the contracting parties, both parties would benefit from a mechanism, such as sel...

Signaling and commitment features, as embedded into the legal requirements for REIT IPOs, and a regime change in macroeconomic conditions, going from decades-long uncertainty to recent and unexpected stability, offer new insights into the pricing of REIT IPOs in Turkey. All REIT IPOs between 1996 and 2014 enter our sample. Increases beyond the lega...

Are REITs income stocks, only? Following Myers (1977) and Bernardo et al. (2007), we examine empirically REITs’ unlevered betas, betas of growth options, betas of assets-in-place and the difference between the latter two in detail for 1983–2012, and also for three sequential, distinct, and mutually-exclusive REIT sub-periods. We find that, (i) the...

This chapter presents a summary of the Australian banking and real-estate markets. It further discusses the policy developments used to fight off the adverse expected consequences of the global financial crisis (GFC). The chapter concludes with a review of the current state of both the markets. Essentially, there is a consensus that Australia's res...

This paper adopts the methodology in Bali and Cakici (Journal of Financial & Quantitative Analysis, 43, 29–58, 2008) in tracking the evolution of the relation between equity REITs’ idiosyncratic risk and their cross-sectional expected returns between 1981 and 2010. In addition to the full sample period, we study this relation for (i) January 1981–D...

We examine empirically cross-fertilization in the productivity growth of banks between a state and its neighboring and non-neighboring states before (1971-1977) and during (1982-1995) the interstate multibank holding company (IMBHC) deregulations, upon which, cross-border bank M&As, mainly among neighboring states, could enhance cross-fertilization...

We show that recent developments in hedonic pricing theory allow modeling of the equilibrium pricing function as the marginal cost of an additional housing unit plus a markup that varies inversely with the elasticity of demand. Useful information about demand elasticity at a given point on the envelope function can be recovered from the hedonic reg...

This paper studies empirically the capital structure of Turkish REITs as they offer unique and so far untested angles. They do not have to pay out dividends, yet enjoy the exemption from paying corporate taxes since their legal foundation in 1998. Several financial meltdowns occurred in the last three decades, keeping investors with a doubt about T...

The US banking industry offers a unique, natural and fertile environment to study geography's effects on banks' behavior and performance. The literature on banks' operating performance, while extensive, says little about the influence of spatial interactions on banks' performance. We compute and examine, using a physical distance-based spatio-tempo...

The Chinese economy has posted an average annual growth rate of around 10% for at least a decade now. The boom in real estate is one of the most visible symbols of China’s steps to become an economic and political giant in this century. This paper examines empirically the determinants of capital structure of all the listed real estate companies in...

Using a sample of newly public firms, we examine the determinants of a firm’s initial capital structure. We conjecture that leverage will be determined by the interaction between the quality of a firm’s projects and its founder’s control considerations. Our results suggest that this is indeed the case. In particular, we find a convex relation betwe...

We examine the Fisher hypothesis with weekly equity returns and latently obtained simulated expected weekly inflation rates for five sectors in USA, Japan, UK, Canada and South Africa between Jan. 1975 and May 2009 and for several sub-periods, including that for the global financial crisis. Three main interdependent innovations define this paper. F...

This paper suggests that an estimation of a cost, production or profit function and the resulting performance measures, such as scale efficiency, scale or scope economies, should reflect the dynamic changes happening in the marketplace. Most of these dynamic changes occur latently, making a latent variable approach, as embodied in the Kalman filter...

This paper provides the first empirical evidence for the Canadian market on the stock price performance of firms announcing business relocation decisions. Using a sample of 87 announcements by listed firms between 1975 and 1997, our results show that, on average, the market reacts positively to the announcements of business relocations. We observe...

Using a sample of newly public firms, we examine the determination of family ownership, leverage, and firm value. We conjecture that a firm's initial capital structure will be determined by the interactions between the quality of its projects, the founder's benefits of control and the limit imposed upon them by monitoring from the outside investors...

This study empirically tests the inflation-hedging abilities of Turkish REITs in comparison to the indices of common stocks listed on the Istanbul Stock Exchange (ISE) over the period December 1999 to December 2004. Two main factors motivate this study. First, compared to their counterparts in developed capital markets, Turkish REITs have some impo...

"We study the capital structure decisions of listed firms in China between 1992 and 2001. The Chinese market exhibits high information asymmetry, phenomenal growth, highly concentrated ownership, and a lack of external market for corporate control. We find that Chinese firms use little long-term debt, which is positively (negatively) related to fir...

Some commentators suggest that the Wall Street views family firms with scepticism. The appointment of independent directors to form a majority on a firm's board of directors should constitute a strong signal to the market of a family firm's willingness to be monitored objectively and thus should alleviate Wall Street's scepticism. This is likely to...

We consider empirically whether observing the foreign currency hedging position of a large, multinational and non-financial U.S. firm improves an analyst's forecast accuracy. Considering the foreign currency hedging position of a firm offers us an interesting opportunity to examine Lim's (2001) proposition that analysts trade off a positive bias in...

Relative to financial securities markets, information is a scarce commodity in real estate markets. If information diffuses quickly in real estate markets, then we can infer that telecommunications play an important role. On the other hand, spatial barriers such as rivers can slow down the assimilation of relevant information if face-to-face contac...

We study the influence of the evolution in intrastate and interstate deregulations on the total factor productivity growth of U.S. commercial banking during 1971-95. We consider statewide deregulations in intrastate branching, intrastate multibank holding company (MBHC), interstate multibank holding company, and interstate MBHC de novo branching re...

Previous research initiated by Claessens et al. (2002) has established a value discount of disproportional ownership structures. Due to endogeneity problems it is difficult to provide a causal interpretation of these findings. We provide a thorough analysis of this value discount in a large sample of Western European firms, which is consistent with...

Quebec's drive for sovereignty from Canada has been the source of political uncertainty for decades in Canada. This paper studies empirically stock market's reaction to the announcements of business relocations from the province of Quebec to other provinces within Canada. Similar announcements about Toronto are used for control. Empirical results s...

Quality problems that are known to the seller of a product, but will become known to the buyer only after the purchase have the potential to frustrate voluntary exchanges. Where the determination of quality after the sale is cut-and-dried, brand names and unconditional guarantees will bond contract performance. When the problem is more subtle or co...

In an efficient market, where the participants form their expectations rationally, all potential changes induced by a predictable event are incorporated into the asset prices before the uncertainty relating to the outcome of the event is resolved. This paper develops a methodology to test whether temporal prices of fixed income assets reflect marke...

We examine extreme volatility events for 1987-99 in five S&P sub-aggregate indices: financial, industrial, mid-cap, transport, and utility. Identified event days are those for which the ratio of subsequent to prior return variance falls into the 1% critical range of a two-tailed F test. In sharp contrast to prior literature, 63.5% of extreme volati...

We examine significant volatility shifts in regional housing price changes, adapting a method of Haugen, Talmor and Torous (1991) independent of predefined sampling blocks. We identify 36 volatility events, most of which are purely regional, but three of which are national. We find significant associations of volatility events and economic conditio...

Since the liberalization of banking in 1990, the number of banks in Croatia has more than doubled. Using stochastic-cost frontier methodology and data for 1994 and 1995, we estimateX-efficiency and scale-efficiencies for both old and new, state and private banks. New banks are shown to be moreX-inefficientand more scale-inefficientthan either old p...

We study whether regulation, after controlling for several explanatory variables, has influenced the total factor productivity (TFP) growth of U.S. commercial banking during 1946–1995. We report: 1) that the overall impact on TFP growth of regulation has been negative; 2) that the FDIA of 1950, the CEBA of 1987, the DIA of 1982, and the DIDMCA of 1...

This paper studies total factor productivity (TFP) in U.S. commercial banking for 1935–1991. TFP can contain a procyclical bias when some input factors are not freely variable, causing their shadow and market prices to differ. We correct this bias in TFP by decomposing it into its latent stochastic trend and cyclical components by employing the Kal...

This paper investigates the efficiency of the bond valuation process by analyzing the effect of a call announcement on the US Treasury bond market. The Treasury's action surprised many investors since the Government had not called bonds for the preceding 30 years. Quick adjustment of prices to new information is an indicator of the efficiency with...

This article examines patterns of temporal and spatial diffusion of real estate price changes. In addition to means, changes in volatility are tracked in reaction to substantial new information, estimated with GARCH-M methods. The data covers towns in Connecticut and near San Francisco. There is evidence of negative feedback at short lags, contrary...

Brokerage services have long been an integral part of property exchanges; yet, our understanding of how brokerage services influence sales prices of properties is quite limited. While recent papers have advanced the much needed theory on this and related questions, the empirical evidence is modest and comes only from single family residential prope...

Examining the time path of the scale economies has not received much attention until recently. Moreover, the time path of scale economies for a given firm has not been studied in the banking literature at all. Examining scale economies, either from cross-sectional or panel data, based only on a single estimate ignores the dynamic behavior (both cos...

We examine characteristics of housing price dynamics that may be consistent with rational learning and not simply irrational feedback trading. We find significant patterns of temporal and spatial diffusion that are more amenable to explanations that allow for rational components. First, we execute our tests not simply on housing price changes, but...

This paper provides a review of the studies that have examined the efficiency of the real estate market. Existing evidence suggests that real estate market segments (i.e., housing, income-property, and land markets) experience different degrees of efficiency. Short-run returns to housing (and real house price changes) are generally found to be posi...

The positive feedback hypothesis states that good news (bad news) engenders positive (negative) attitudes that accentuate the impact of the news on asset prices. It is a special case of the representativeness heuristic which states that there is a general tendency to overemphasize the most recent evidence. This paper tests a form of the positive fe...

In this article economies of scale are examined for Turkish banks. The literature on economies of scale in depository institutions is substantial. Yet, virtually all published articles have examined production/costs using data for developed countries, such as the United States, Canada, and Israel. Here we examine data from a country that has an eco...

Previous research dealing with efficiency in housing markets has been based on time-series evidence. This paper extends this research by introducing spatial considerations as well. Efficiency in housing markets is examined here using a framework that considers both temporal and spatial dimensions. Using data from the Hartford, Connecticut, metropol...

The set of real properties sold during a given period of time may be subdivided into several subsets comprising those properties that sold only once, only twice, and three or more times. The major reason for subdividing the sample is to allow estimation of residential price indices by the repeat-sales methodology. The purpose of this paper is to co...

Abstract (2 leaves) bound with copy. Thesis (Ph. D.)--University of Connecticut, 1991. Includes bibliographical references.