Realization utility and real estate
Using unique real estate data that allows for accurately-measured capital gains, we examine whether sell propensities and selling prices depend on an owner's capital gain. We find that sell propensities are higher and selling prices are lower for properties with a capital gain, with the sell pr...
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sg-smu-ink.lkcsb_research-62112017-08-25T02:07:57Z Realization utility and real estate HONG, Dong LOH, Kiat Roger WARACHKA, Mitch Using unique real estate data that allows for accurately-measured capital gains, we examine whether sell propensities and selling prices depend on an owner's capital gain. We find that sell propensities are higher and selling prices are lower for properties with a capital gain, with the sell propensities experiencing a discontinuity at a zero capital gain. Consistent with realization utility (Barberis and Xiong, 2012), larger capital gains are associated with higher sell propensities and lower selling prices. Overall, our evidence provides empirical support for realization utility, while alternative explanations such as financing constraints and informed trading cannot explain our findings. 2016-04-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/5212 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=6211&context=lkcsb_research http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Real Estate Disposition Effect Realization Utility Finance and Financial Management |
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Real Estate Disposition Effect Realization Utility Finance and Financial Management HONG, Dong LOH, Kiat Roger WARACHKA, Mitch Realization utility and real estate |
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Using unique real estate data that allows for accurately-measured capital gains, we examine whether sell propensities and selling prices depend on an owner's capital gain. We find that sell propensities are higher and selling prices are lower for properties with a capital gain, with the sell propensities experiencing a discontinuity at a zero capital gain. Consistent with realization utility (Barberis and Xiong, 2012), larger capital gains are associated with higher sell propensities and lower selling prices. Overall, our evidence provides empirical support for realization utility, while alternative explanations such as financing constraints and informed trading cannot explain our findings. |
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text |
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HONG, Dong LOH, Kiat Roger WARACHKA, Mitch |
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HONG, Dong LOH, Kiat Roger WARACHKA, Mitch |
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HONG, Dong |
title |
Realization utility and real estate |
title_short |
Realization utility and real estate |
title_full |
Realization utility and real estate |
title_fullStr |
Realization utility and real estate |
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Realization utility and real estate |
title_sort |
realization utility and real estate |
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Institutional Knowledge at Singapore Management University |
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2016 |
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https://ink.library.smu.edu.sg/lkcsb_research/5212 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=6211&context=lkcsb_research |
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