This paper studies the performance of private property companies in 13 European countries: Austri... more This paper studies the performance of private property companies in 13 European countries: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Netherlands, Norway, Portugal, Sweden, and the UK for the period of 1990 to 2003. We find large differences between the countries with the most profitable companies found in the Netherlands, Spain, Denmark, and the UK. We use a simultaneous equation framework to model the real estate sector with Profitability and capital structure as endogenous variables. We find that the elements that influence the profitability of the firm in one country are also largely relevant in the other countries but differ in the effect due to different economic conditions and business cycles in different countries. The economic crisis in the early 1990s left a clear mark for the countries suggesting the crisis was pan European. This indicates that business cycle is one important factor in the study of performance of the real estate sector. In addition, there can be potential portfolio gains by spreading the investment over the studied countries. We find a negative effect of borrowing on performance in most of the countries except Sweden, Greece (insignificant). Firm size firm has a weakly positive effect on performance in all countries except for Sweden where it is insignificant. Except for Austria (negative significant), Greece, and Portugal (insignificant), tangibility is related significantly positive to borrowing, but not to profitability.
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
This paper studies the performance of private property companies in 13 European countries: Austri... more This paper studies the performance of private property companies in 13 European countries: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Netherlands, Norway, Portugal, Sweden, and the UK for the period of 1990 to 2003. We find large differences between the countries with the most profitable companies found in the Netherlands, Spain, Denmark, and the UK. We use a simultaneous equation framework to model the real estate sector with Profitability and capital structure as endogenous variables. We find that the elements that influence the profitability of the firm in one country are also largely relevant in the other countries but differ in the effect due to different economic conditions and business cycles in different countries. The economic crisis in the early 1990s left a clear mark for the countries suggesting the crisis was pan European. This indicates that business cycle is one important factor in the study of performance of the real estate sector. In addition, there can be potential portfolio gains by spreading the investment over the studied countries. We find a negative effect of borrowing on performance in most of the countries except Sweden, Greece (insignificant). Firm size firm has a weakly positive effect on performance in all countries except for Sweden where it is insignificant. Except for Austria (negative significant), Greece, and Portugal (insignificant), tangibility is related significantly positive to borrowing, but not to profitability.
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
The contents of this paper are the authors' sole responsibility. They do not necessarily represen... more The contents of this paper are the authors' sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members.
The contents of this paper are the authors' sole responsibility. They do not necessarily represen... more The contents of this paper are the authors' sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members.
In this paper, we analyze the performance of the Swedish real estate sector by various profitabil... more In this paper, we analyze the performance of the Swedish real estate sector by various profitability measures. We use an unbalanced panel of 781 non-listed companies from 1998 to 2000 with 3421 observations. There exists large regional and sectorial differences in performance but it is not due to regional or sectorial effect. Rather those differences can be largely explained by capital structure, tangibility and turnover of the firm, etc. We use both a single equations and a simultaneous equations approach to control for endogeneity and simultaneity. In the simultaneous equations framework we find a positive and significant effect capital structure on performance. Performance has a larger and significant effect on capital structure. The results indicate that banks and financial institutions lend more to profitable firms and firms with more tangible assets than otherwise. Tangible assets as 'inventory' contribute negatively to performance after taking into account the effect of capital structure on performance. We can conclude that tangible assets contribute to the profitability of a firm up to a point as collateral for bank loans. However, excessive tangible assets are negatively related to the profitability, at least for the shorter term. Our results stand the same even after controlling for regional differences and sub sectorial differences.
This paper studies the performance of private property companies in 13 European countries: Austri... more This paper studies the performance of private property companies in 13 European countries: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Netherlands, Norway, Portugal, Sweden, and the UK for the period of 1990 to 2003. We find large differences between the countries with the most profitable companies found in the Netherlands, Spain, Denmark, and the UK. We use a simultaneous equation framework to model the real estate sector with Profitability and capital structure as endogenous variables. We find that the elements that influence the profitability of the firm in one country are also largely relevant in the other countries but differ in the effect due to different economic conditions and business cycles in different countries. The economic crisis in the early 1990s left a clear mark for the countries suggesting the crisis was pan European. This indicates that business cycle is one important factor in the study of performance of the real estate sector. In addition, there can be potential portfolio gains by spreading the investment over the studied countries. We find a negative effect of borrowing on performance in most of the countries except Sweden, Greece (insignificant). Firm size firm has a weakly positive effect on performance in all countries except for Sweden where it is insignificant. Except for Austria (negative significant), Greece, and Portugal (insignificant), tangibility is related significantly positive to borrowing, but not to profitability.
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
This paper studies the performance of private property companies in 13 European countries: Austri... more This paper studies the performance of private property companies in 13 European countries: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Netherlands, Norway, Portugal, Sweden, and the UK for the period of 1990 to 2003. We find large differences between the countries with the most profitable companies found in the Netherlands, Spain, Denmark, and the UK. We use a simultaneous equation framework to model the real estate sector with Profitability and capital structure as endogenous variables. We find that the elements that influence the profitability of the firm in one country are also largely relevant in the other countries but differ in the effect due to different economic conditions and business cycles in different countries. The economic crisis in the early 1990s left a clear mark for the countries suggesting the crisis was pan European. This indicates that business cycle is one important factor in the study of performance of the real estate sector. In addition, there can be potential portfolio gains by spreading the investment over the studied countries. We find a negative effect of borrowing on performance in most of the countries except Sweden, Greece (insignificant). Firm size firm has a weakly positive effect on performance in all countries except for Sweden where it is insignificant. Except for Austria (negative significant), Greece, and Portugal (insignificant), tangibility is related significantly positive to borrowing, but not to profitability.
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
In this paper we analyse factors influencing firms' leverage. We use market capital ratio and boo... more In this paper we analyse factors influencing firms' leverage. We use market capital ratio and book capital ratio and book debt ratio as the leverage measure. We use an unbalanced panel for 7 countries: Canada,
The contents of this paper are the authors' sole responsibility. They do not necessarily represen... more The contents of this paper are the authors' sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members.
The contents of this paper are the authors' sole responsibility. They do not necessarily represen... more The contents of this paper are the authors' sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members.
In this paper, we analyze the performance of the Swedish real estate sector by various profitabil... more In this paper, we analyze the performance of the Swedish real estate sector by various profitability measures. We use an unbalanced panel of 781 non-listed companies from 1998 to 2000 with 3421 observations. There exists large regional and sectorial differences in performance but it is not due to regional or sectorial effect. Rather those differences can be largely explained by capital structure, tangibility and turnover of the firm, etc. We use both a single equations and a simultaneous equations approach to control for endogeneity and simultaneity. In the simultaneous equations framework we find a positive and significant effect capital structure on performance. Performance has a larger and significant effect on capital structure. The results indicate that banks and financial institutions lend more to profitable firms and firms with more tangible assets than otherwise. Tangible assets as 'inventory' contribute negatively to performance after taking into account the effect of capital structure on performance. We can conclude that tangible assets contribute to the profitability of a firm up to a point as collateral for bank loans. However, excessive tangible assets are negatively related to the profitability, at least for the shorter term. Our results stand the same even after controlling for regional differences and sub sectorial differences.
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Papers by Klaus Hammes