Consolidation within the Australian real estate investment trust sector : an evaluation of the impact on unitholder returns

Mergers and acquisitions within the Australian-real estate investment trusts (A-REITs) sector have become a noticeable trend in the last decade. Utilising
event study methodology, 36 successful A-REIT mergers and acquisitions
between January 1995 and December 2008 were examined. Both target and
bidding shareholders experience positive excess returns of 4.27% and 0.54%
respectively over the 41 day event window [−20, +20]. Analysis indicates that the
cumulative abnormal returns (CARs) for bidding firms are considerably greater
than previous research suggests. This study finds higher bidder CARs when scrip
or a combination of scrip and cash is used to finance the acquisition. We also find
that the relative size or the size of the acquirer have a positive and significant
impact on the excess returns of bidding A-REITs. This suggests that the
synergistic benefits from the acquisition are a result of economies of scale and
increased market power. There is also some evidence that the relative size and
method of payment influence the CARs of target firms during the event window.

Evaluating the distributional implications of price movements : methodology, application and Australian evidence

This article investigates the distributional implication of relative price movements in Australia. It proposes and applies a method of evaluating the nature and size of the inequality bias of price movements. In the process, the study introduces a new demographic demand model that yields sensible and statistically significant estimates of the general equivalence scale and the size economies of scale. The study finds that relative price movements in Australia during the 1990s had an inequality increasing bias and that this bias increased in the late 1990s and the first part of the new millennium. The disaggregated analysis of the inequality movements shows that the regressive nature of relative price changes affected the renters much more than non-renters. The study also provides evidence on the decomposition of overall inequality between demographic groups and compares the decomposition between the nominal and real expenditure inequalities.

The level of representative underwriting and the underwriting costs of REIT SEOs

Purpose – The purpose of this paper is to investigate factors influencing the underwriting discount for US Real Estate Investment Trust (REIT) Seasoned Equity Offerings (SEOs).

Design/methodology/approach – The study provides new evidence on determinants of underwriting discounts with a comprehensive dataset of 783 US REIT SEOs from 1996 until June 2010. Ordinary least squares regressions are performed to estimate the effect of the level of representative underwriting along with other potential factors on underwriting discounts.

Findings – The study complements the well-documented notion of the economies of scale in SEO underwriting discounts. The equally (value) weighted underwriting discounts averaged 4.21 per cent (4.10 per cent) with a declining trend over time. The findings of this study show the statistically and economically significant negative effect of the level of representative underwriting on the underwriting discounts, as well as the significance of the structure of underwriting syndicate in determining the underwriting discounts. The findings suggest that issuers can minimize the costs of raising secondary equity capital by optimally allocating the underwriting business among the underwriters.

Originality/value – This paper adds to the international REIT SEO literature by exploring new evidence behind underwriting discounts. The study includes data before and after the REIT Modernization Act 1999 and during the recent global financial crisis period.

The direct costs of raising external equity capital for US REIT IPOs

Purpose – The purpose of this paper is to investigate the total direct costs of raising external equity capital for US real estate investment trust (REIT) initial public offerings (IPOs).

Design/methodology/approach – The study provides recent evidence on total direct costs for a comprehensive dataset of 125 US REIT IPOs from 1996 until June 2010. A multivariate OLS regression is performed to determine significant factors influencing the level of total direct costs and also underwriting fees and non-underwriting direct expenses.

Findings – The study finds economies of scale in total direct costs, underwriting fees and non-underwriting expenses. The equally (value) weighted average total direct costs are 8.33 percent (7.52 percent), consisting of 6.49 percent (6.30 percent) underwriting fees and 1.87 percent (1.22 percent) non-underwriting direct expenses. The study finds a declining trend of total direct costs for post 2000 IPOs which is attributed to the declining trend in both underwriting fees and non-underwriting direct expenses. Offer size is a critical determinant for both total direct costs and their individual components and inversely affects these costs. The total direct costs are found significantly higher for equity REITs than for mortgage REITs and are also significantly higher for offers listed in New York Stock Exchange (NYSE). Underwriting fees appear to be negatively influenced by the offer price, the number of representative underwriters involved in the issue, industry return volatility and the number of potential specific risk factors but positively influenced by prior quarter industry dividend yield and ownership limit identified in the prospectus. After controlling for time trend, the paper finds REIT IPOs incur higher non-underwriting direct expenses in response to higher industry return volatility prior to the offer.

Originality/value – This paper adds to the international REIT IPO literature by exploring a number of new influencing factors behind total direct costs, underwriting fees and non-underwriting direct expenses. The study includes data during the recent GFC period.

Molecular determination of sex-ratio in Yellowhammer Emberiza citrinella offspring

Theory predicts skewed offspring sex-ratios in a range of situations in which the economics of producing the two sexes differ. Offspring sex-ratio skews in birds are relatively scarcely observed compared to other taxa. This could be because avian molecular sexing techniques, which allow young birds to be sexed, have only recently become available. Alternatively, birds may be largely constrained from adaptively manipulating the sex-ratio of their offspring. We used a recently-developed molecular sexing technique for birds to sex 420 Yellowhammer Emberiza citrinella offspring from 168 clutches found in Oxfordshire. Clutch sex-ratio of the population did not depart from the expected binomial distribution, and there was no variation in clutch sex-ratio with laying date, breeding attempt, or a variety of habitat variables which were predicted to differentially affect the survival and future reproductive success of offspring of the two sexes. There was no difference in size or growth rate of the sexes and nestling mortality was not sex-biased. Hence, although we can identify possible advantages of manipulating the sex-ratio in this species, it seems not to be used as a breeding strategy. Given the lack of consistent evidence for skewed avian offspring sex-ratios, more experimental work is required to determine whether, and how, birds may adaptively manipulate their offspring sex-ratio.

Offering fragile X syndrome carrier screening: a prospective mixed-methods observational study comparing carrier screening of pregnant and non-pregnant women in the general population

Article focus
▪ This article is a protocol of a study that involves offering fragile X syndrome carrier screening to pregnant and non-pregnant women in the general population. We are undertaking a programme evaluation approach using mixed methods to collect data about informed decisionmaking and predictors of test uptake, with a focus on psychosocial measures. We are also undertaking an economic appraisal.

Students’ views on the incorporation of commercial awareness in real estate education

Purpose – The purpose of this paper is to review how real estate students perceive and define commercial awareness, which is one of the most important employability skills. This paper also examines students’ perceptions about how their courses support and develop their commercial awareness. In addition, it compares students’ and academics’ views on commercial awareness and identifies whether there are any gaps.

Design/methodology/approach – This paper presents the research findings of a questionnaire survey and e-mail discussions with students who are currently studying Royal Institution of Chartered Surveyors (RICS)-accredited real estate courses in the UK. The questionnaire aimed to gather students’ views on the definitions and components of commercial awareness and identify what skills and attributes are required for its development. It also evaluates how commercial awareness has been embedded in the real estate courses. The aim of each discussion was to gain deeper insight on how components of commercial awareness are embedded in real estate courses, and 17 discussions were conducted. The contents of the e-mail discussions were analysed and similar themes were identified and coded. The frequency of the answer in the questionnaire and comments from interviewees is presented. The findings from students’ views have been compared to published research reporting UK RICS-accredited real estate course providers’ views on commercial awareness. In addition to descriptive statistics, Fisher’s exact test was used to identify the statistical significance between the academics’ and students’ views on commercial awareness.

Findings – The UK real estate students agreed that the most important definition of commercial awareness is a “person’s ability to understand the economics of business”. They agreed that “financial” component is the most important component of commercial awareness and it is the largest portion of their courses. The most important skill and attribute for commercial awareness development are “critical thinking” and “ability and willingness to update professional knowledge”, respectively. Although the descriptive analysis shows students and academics have different views on the definition and components of commercial awareness and its incorporation within real estate courses, the Fisher exact test shows that only a few elements are different enough to be statistically significant. This analysis shows that while students and academics have slightly different views on commercial awareness they are not very different.  Commercial awareness is an important employability skill, thus, it is still necessary for real estate academics to re-visit the curriculum and to ensure learning outcomes related to commercial awareness have been clearly explained and communicated to students. Furthermore, it is vital for students to obtain practical experience in order to fully develop their commercial awareness. 

Originality/value – This paper is a pioneer study focused on reviewing real estate students’ views on commercial awareness, including identifying its definition, components and evaluating the extent to which commercial awareness has been embedded in their courses. It also identifies the skills and attributes that students thought were required for the development of commercial awareness.  Furthermore, it discusses students’ preferred ways of enhancing their commercial awareness as part of the course they are studying. It is the first study identifying the statistical difference between students’ and academics’ views on commercial awareness. The understanding of students’ views on commercial awareness, their preferred delivery method and the divergence between students’ and academics’ views on commercial awareness can provide useful insights for course directors on the development and renewal of real estate course curriculum

Nutrition, management and other environmental influences on the quality and production of mohair and cashmere with particular reference to mediterranean and annual temperate climatic zones : a review

Goat fibre production is affected by genetic and environmental influences. Environmental influences which are the subject of this review include bio–geophysical factors (photoperiod, climate–herbage system and soil–plant trace nutrient composition), nutrition factors and management factors. Nutrition and management influences discussed include rate of stocking, supplementary feeding of energy and protein, liveweight change, parturition and management during shearing. While experimental data suggest affects of seasonal photoperiod on the growth of mohair and cashmere are large, these results may have confounded changes in temperature with photoperiod. The nutritional variation within and among years is the most important climatic factor influencing mohair and cashmere production and quality. Mohair quality and growth is affected significantly by rate of stocking and during periods of liveweight loss by supplementary feeding of either energy or protein. Strategic use of supplements, methods for rapid introduction of cereal grains, influence of dietary roughage on intake and the economics of supplementary feeding are discussed. Cashmere production of young, low producing goats does not appear to be affected by energy supplementation, but large responses to energy supplementation have been measured in more productive cashmere goat strains. The designs of these cashmere nutrition experiments are reviewed. Evidence for the hypothesis that energy-deprived cashmere goats divert nutrients preferentially to cashmere growth is reviewed. The influence and potential use of liveweight manipulation in affecting mohair and cashmere production and quality are described. Estimates of the energy requirements for the maintenance of fibre goats and the effect of pregnancy and lactation on mohair and cashmere growth are summarised. The effects and importance of management and hygiene during fibre harvesting (shearing) in producing quality fibre is emphasised. The review concludes that it is important to assess the results of scientific experiments for the total environmental content within which they were conducted. The review supports the view that scientific experiments should use control treatments appropriate to the environment under study as well as having controls relevant for other environments. In mediterranean and annual temperate environments, appropriate controls are liveweight loss and liveweight maintenance treatments. Mohair producers must graze goats at moderate rates of stocking to maximise animal welfare, but in so doing, they will produce heavier goats and coarser mohair. In mediterranean and annual temperate environments, seasonal changes in liveweight are large and influence both quality and production of mohair and cashmere. Mohair and cashmere producers can manipulate liveweight by supplementary feeding energy during dry seasons to minimise liveweight loss, but the economics of such feeding needs to be carefully examined. Strategic benefits can be obtained by enhancing the growth of young does prior to mating and for higher producing cashmere goats.

A non-stationary panel data investigation of the unemployment–crime relationship

Many empirical studies of the economics of crime focus solely on the determinants thereof, and do not consider the dynamic and cross-sectional properties of their data. As a response to this, the current paper offers an in-depth analysis of this issue using data covering 21 Swedish counties from 1975 to 2010. The results suggest that the crimes considered are non-stationary, and that this cannot be attributed to county-specific disparities alone, but that there are also a small number of common stochastic trends to which groups of counties tend to revert. In an attempt to explain these common stochastic trends, we look for a long-run cointegrated relationship between unemployment and crime. Overall, the results do not support cointegration, and suggest that previous findings of a significant unemployment–crime relationship might be spurious.

Benefits of education at the intensive margin: childhood academic performance and adult outcomes among American immigrants

Using the Children of the Immigrants Longitudinal Study (CILS), we examine the associationbetween education at the intensive margin and twenty pecuniary and non-pecuniary adultoutcomes among first- and second-generation American immigrant youth. Education at theintensive margin is measured by two widely used standardized math and reading test scores,national percentile rankings on these tests and cumulative grade point average (GPA) in bothmiddle and high school. Our findings provide evidence that the academic achievement ofimmigrant children in early adolescence is an accurate predictor of later life outcomes. Wealso examine a novel hypothesis that relative academic performance of immigrant children inhigh school compared to middle school, which could be an indicator of change in adolescentaspirations and motivation as well as the degree of adaptation and assimilation to the hostcountry, has an effect on their adult outcomes even after controlling for the levels ofacademic performance in middle and high school. The results suggest that an improvementin GPA from middle school to high school is associated with favorable adult outcomes.Several sensitivity tests confirm the robustness of main findings.

Who wants safer cities? Perceptions of public safety and attitudes to migrants among China's urban population

Most extant research in the economics of crime literature has focused on explaining variations in crime rates. Public action to prevent crime, however, is often dependent on the level of concern about public safety that is expressed in public perceptions surveys. The economics of crime literature has largely overlooked responses to such surveys as data sources and therefore it has not accounted for the role that public opinion might have in mobilizing public action against crime. We use a unique survey administered in 2003 in 32 Chinese cities to examine the determinants of perceptions of public safety among China's urban population. One of our major findings is that individuals who have a negative perception of rural-urban migrants living in their city have a poor perception of public safety. We also find that the unemployment rate, the masculinity ratio and expenditure on armed police in the city in which the individual resides, whether the individual lives in the coastal region as opposed to the central or western region and average changes in housing prices and average changes in rental prices in the city in which the individual lives are important predictors of perceptions of public safety. © 2007 Elsevier Inc. All rights reserved.

Satellite imagery as a single source of predictor variables for habitat suitability modelling: how Landsat can inform the conservation of a critically endangered lemur

1. Statistical modelling of habitat suitability is an important tool for planning conservation interventions, particularly for areas where species distribution data are expensive or hard to collect. Sometimes however the predictor variables typically used in habitat suitability modelling are themselves difficult to obtain or not meaningful at the geographical extent of the study, as is the case for the Alaotran gentle lemur Hapalemur alaotrensis, a critically endangered lemur confined to the marshes of Lake Alaotra in Madagascar.2. We developed a habitat suitability model where all predictor variables, including vegetation indices and image texture measures at different scales (as surrogates for habitat structure), were derived from Landsat7 satellite imagery. Using relatively few presence records, the maximum entropy (Maxent) approach and AUC were used to assess the performance of candidate predictor variables, for studying the effect of scale, model selection and mapping suitable habitat.3. This study demonstrated the utility of satellite imagery as a single source of predictor variables for a Maxent habitat suitability model at the landscape level, within a restricted geographical extent and with a fine grain, in a case where predictor variables typically used at the macro-scale level (e.g. climatic and topographic) were not applicable.4. In the case of H. alaotrensis, the methodology generated a habitat suitability map to inform conservation management in Lake Alaotra and a replicable protocol to allow rapid updates to habitat suitability maps in the future. The exploration of candidate predictor variables allowed the identification of scales that appear ecologically relevant for the species.5. Synthesis and applications. This study presents a cost-effective combination of maximum entropy habitat suitability modelling and satellite imagery, where all predictor variables are derived solely from Landsat7 images. With a habitat modelling method like Maxent that shows good performance with few presence samples and Landsat images now freely available, the methodology can play an important role in rapid assessments of the status of species at the landscape level in data-poor regions, when typical macro-scale environmental predictors are of little use or difficult to obtain.

Hard times and the "fact" and "fancy" of modern labour management

Dickens believed that, played out in practical terms, the pursuit of a totally rationalised society devoid of ‘Fancy’ only served to benefit those in power to the impoverishment of those in their charge. He was appalled by a selfish and self-interested philosophy that combined with laissez-faire capitalism to reduce human effort to mere numbers for the sole purpose of determining its monetary worth. His story thus provides a rebuke to the dehumanising effects of utilitarianism and the way it is used to calculate workers in the manner of machines; reducing them to little more than a resource that is no more or less important any other resource used in industrial enterprise. Their modern-day counterparts live in similar Hard Times in being in the grip of laissez-fair economics of global proportions, which visits upon them similar conceptions of their worth, as evidenced by the current precariousness of their employment and their present exposure to the vicissitudes of arbitrary power exercised by managements still wedded to utilitarian principles. As a result, the ‘light of Fancy’ that at one time would periodically burst through in earnest storms of protest, is now refracted into cynical asides directed at rational systems that continue to standardise and homogenise all that ‘counts’ in working life.

A domain-specific approach for assessing physical activity efficacy in adolescents: from scale conception to predictive validity

Objective: To develop and test the utility of a domain-specific physical activity efficacy scale in adolescents for predicting physical activity behaviour. Design: Two independent studies were conducted. Study 1 examined the psychometric properties of a newly constructed Domain-Specific Physical Activity Efficacy Questionnaire (DSPAEQ) and study 2 tested the utility of the scale for predicting leisure- and school-time physical activity. Methods: In study 1, descriptive physical activity data were used to generate scale items. The scales factor structure and internal consistency were tested in a sample of 272 adolescents. A subsequent sample of Canadian (N = 104) and New Zealand (N = 29) adolescents, was recruited in study 2 to explore the scale's predictive validity using a subjective measure of leisure- and school-time physical activity. Results: A principle axis factor analysis in study 1 revealed a 26-item, five-factor coherent and interpretable solution; representative of leisure and recreation, household, ambulatory, transportation, and school physical activity efficacy constructs, respectively. The five-factor solution explained 81% of the response variance. In study 2 the domain-specific efficacy model explained 16% and 1% of leisure- and school-time physical activity response variance, respectively, with leisure time physical activity efficacy identified as a unique and significant contributor of leisure-time physical activity. Conclusion: Study 1 provides evidence for the tenability of a five factor DSPEAQ, while study 2 shows that the DSPEAQ has utility in predicting domain-specific physical activity. This latter finding underscores the importance of scale correspondence between the behavioural elements (leisure-time physical activity) and cognitive assessment of those elements (leisure-time physical activity efficacy).

Digital presentation plan: still the foundation of landscape design representation?

The parameters of the orthographic plan drawing largely compel the observer to view the plan image from a single vantage point and in a single instant. the plan drawing places the viewer at a fixed distance—looking from above—at an abstract flattening of a curved surface area of the earth. Landscape architects, who often deal with expansive scales, appreciate how the view from above enables survey and understanding of space of large (or small) tracts of the landscape. The view enabled by the plan, in this case, of a landscape design, allows inscribing and printing on to 2D flat surfaces (computer screens and paper). This process facilitates the sizing and scaling of elements. Plans allow for measurement without distortion of scale afforded by cartographic and drawing techniques that skew space and perspective. Thus the strength of the plan drawing is enabling construction. Its merit as an imaginative, exploratory medium, however, is less convincing.