Soh, C C and Ong, S E (1999) Motivation and risk perception in foreign and domestic real estate investments. Journal of Financial Management of Property and Construction, 4(3), pp. 47-64. ISSN 1366-4387
Abstract
Project profitability is an important, but not necessarily the main factor determining project decision-making. Among other pertinent factors are less quantifiable factors such as strategic synergy and "gut feel" or judgmental evaluation. This study examines the extent to which factors other than profitability are pertinent and quantifies their relative importance using a pair-wise comparison approach. In addition, this study analyses the extent to which the motivation and risk perception differ between domestic and foreign investments. The evidence from a survey of Singapore developers shows that while project profitability is the most important factor, a myriad of other factors are considered in real estate investment decision making. Further, there exists a preference for domestic projects / home bias in that an unjustifiably low weight is given to domestic economic and country risks. Interestingly, the financing structure and debt level for foreign investments differ from that for domestic investments.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | debt structure, financing, investment, risk, Singapore |
| Index terms: | bias, decision-making, evidence, preference, financing, relative importance, risk perception, motivation, real estate investment, survey, foreign investment, profitability, synergy, Singapore |
| Subjects: | risk assessment, data collection methods, probability and distributions, partnership management, decision analysis, evaluation and assessment methods, psychology, economic analysis, decision-making and reasoning, Geography, environmental hazards |
| Topics: | Risk Management, Procurement, Sustainability, Geographical Context, Human Resources, International Construction, Stakeholder Management, Business Strategy, Research Practice |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here