Finance and Financial Management Commons^™

The Federal Housing Administration In The New Millennium, Anthony Pennington-Cross, Anthony Yezer

Finance Faculty Research and Publications

The first challenge in attempting to predict the future of the Federal Housing Administration (FHA) is to understand why it is still here. No other depression-era mortgage-market institution has survived without substantial modification. We conclude that its survival has depended on its ability to invent new purposes for itself. For example, it changed from a replacement for failed private mortgage insurance using economic soundness as an insurance criterion to an innovator in high-risk lending based on an acceptable risk criterion. FHA has developed special programs to serve the needs of specific groups. We believe this pattern of change in purposes …

Valuing The New Urbanism: The Case Of Kentlands, Charles C. Tu, Mark Eppli

Finance Faculty Research and Publications

This study assesses the impact of new urbanism on single-family home prices. Specifically, we use Duany and Plater-Zyberk's traditional neighborhood development (TND) of Kentlands and surrounding conventional subdivisions to estimate the premium, if any, that single-family homeowners are willing to pay to reside in a community with new urbanist features. Using data on 2,061 single-family home transactions and several hedonic price models, the empirical evidence reveals that consumers are willing to pay a premium to locate in Kentlands.

What Moves Retail Property Returns At The Metropolitan Level?, Mark Eppli, James D. Shilling, Kerry D. Vandell

Finance Faculty Research and Publications

In this article the determinants of metropolitan-level appraisal-based retail property returns are examined by estimating a six-equation model of retail construction starts, retail sales, stock-market returns, commercial mortgage rates, inflation, and the logarithm of stock-market volatility. Residuals from these equations are then used to explain actual movements in retail real estate returns. Our empirical procedure looks at both unadjusted and unsmoothed appraisal-based retail real estate returns. The general finding is that unsmoothed appraisal-based retail real estate returns lag significantly behind market conditions. Furthermore, the results suggest that very little of the variation in metropolitan-level appraisal-based retail real estate returns can …

The Graaskamp Legacy, Mike Miles, Mark Eppli, Max Kummerow

Finance Faculty Research and Publications

James A. Graaskamp's perspective on classroom education and his alternative research paradigm pioneered or greatly enhanced several real estate principles that are more relevant today than during his life. These principles are summarized and presented in 5 sections: A Different Brand of Research, The Development Feasibility, How Appraisers Value, Who's Watching the Chicken Coop, and Teaching an Ethical Vision.

Value Allocation In Regional Shopping Centers, Mark Eppli

Finance Faculty Research and Publications

Understanding consumer shopping patterns is essential in estimating the value of regional shopping centers. Consumer shopping behavior determines retail sales at regional shopping centers which, in turn, impacts shopping center rents and value. This article quantifies the effects of consumer shopping behavior on nonanchor tenant sales in regional shopping centers. The results of this study reveal that the effects of location, comparison shopping, and department store image are important in estimating shopping center patronage and retail sales. They also indicate that the value of a mall can be allocated to real estate and non-real estate value.

Measuring External Shocks To The City Economy: An Index Of Export Prices And Terms Of Trade, Anthony Pennington-Cross

Finance Faculty Research and Publications

This paper details the construction of an index of export goods prices (the Export Price Index or EPI) for a panel of 196 metropolitan areas from 1977 to 1992. The EPI is an indicator of external demand shocks to the city economy which does not suffer from the causal ambiguity of the endogenous indicators such as income, employment or output. The creation of an index of aggregate export prices, the EPI, for the panel of areas provides both academicians and policy analysts with a new exogenous indicator that identifies demand price innovations and the terms of trade shocks …

A Descriptive Analysis Of The Retail Real Estate Markets At The Metropolitan Level, Mark Eppli, Steven P. Laposa

Finance Faculty Research and Publications

Gross Leasable Area (GLA) per capita is a commonly used measure to compare the retail market potential across different retail real estate markets. This study uses GLA per capita to assess the supply of the retail space across fifty-eight metropolitan areas in the United States. After a detailed descriptive analysis of the supply of retail space, we estimate GLA per capita for each metropolitan area using a modified version of the stock adjustment model. Initial findings indicate that the retail construction boom of the 1980s was not a boom at all and that GLA per capita can be predicted using …

The Influence Of Professional Investors On The Failure Of Management Buyout Attempts, Sarah Peck

Finance Faculty Research and Publications

In a sample of 111 MBO offers between 1984 and 1987, almost 30% attract new blockholders. These blockholders are primarily professional investors who act to facilitate a takeover by a higher bidder, thus increasing returns to both themselves and other public shareholders. In contrast, I find little evidence that pre-existing blockholders, particularly institutional holders, affect either the offer outcome or actively participate in the buyout contest once it begins. The overall pattern of results suggests that professional investors, particularly equity-holding companies, are 'control specialists' who provide valuable services as brokers in the market for corporate control.

How Critical Is A Good Location To A Regional Shopping Center?, Mark Eppli, James D. Shilling

Finance Faculty Research and Publications

The goal of this paper is to empirically measure the consumer utility trade-off between store location (i.e., distance to a shopping center) and retail agglomeration in regional shopping centers. Using the Lakshmanan and Hansen retail expenditure model, our findings reveal that the distance specification is of surprisingly little importance in explaining retail sales. Conversely, agglomeration economies were of significant importance in explaining consumer patronage at regional shopping centers. The implication of these results is that smaller regional shopping centers may be dominated by large super-regional shopping centers with the smaller one or two anchor regional shopping centers unable to compete …

Speed Of Adjustment In Commercial Real Estate Markets, Mark Eppli, James D. Shilling

Finance Faculty Research and Publications

No abstract provided.

A Descriptive Analysis Of U.S. Housing Demand For The 1990s, Mark Eppli, Monty J. Childs

Finance Faculty Research and Publications

We analyze the effect of changes in type of household formation (i.e., single person, single parent, married couple, etc.) on the demand for housing and segment income by household type to determine housing tenure. Using data disaggregated by household type, we forecast housing demand for the United States through the turn ofthe century. The results indicate that total housing demand for the decade will be 11.8 million units, of which 8.1 million will be owner-occupied and 3.7 million will be renter-occupied.

The Evolution Of Shopping Center Research: A Review And Analysis, Mark Eppli, John D. Benjamin

Finance Faculty Research and Publications

Retail research has evolved over the past sixty years. Christaller's early work on central place theory, with its simplistic combination of range and threshold has been advanced to include complex consumer shopping patterns and retailer behavior in agglomerated retail centers. Hotelling's seminal research on competition in a spatial duopoly has been realized in the form of comparison shopping in regional shopping centers. The research that has followed Christaller and Hoteling has been as wide as it has been deep, including literature in geography, economics, finance, marketing, and real estate.

In combination, the many extensions of central place theory and retail …

Financing And Accounting For Retail Automobile Dealers, Louis R. Schultz

Bachelors’ Theses

In preparing this work upon the accounting and financing methods in use by retail automobile establishments, the writer realizes full well the vastness of the problems and the wide field to be covered in preparing such a work. To attempt to cover it in its entirety would require a much more comprehensive knowledge of the subject than it is possible to obtain thru the media at hand, and in addition it would require that the problem be looked at thru the eyes of a prophet. The development that has been made so far is only the beginning of a far …

The Growth And Development Of Trust Companies, Gertrude Marie Murphy

Bachelors’ Theses

The term ’’trust company" has not in the past "been one whose meaning was clearly defined;nor is the definition of the present day both brief and accurate. This no doubt is the result of the fact that the trust company is an institution which has gradually developed with the needs of the time and the community; and also because concerns doing different kinds of business have found it advantageous to adopt the title ’’trust company" and to incorporate under the laws governing these companies.

The Valuation Of Assets In The Balance Sheet, Ralph R. Schatzman

Bachelors’ Theses

Among the various forms and types of financial data which confront the business man of today, the balance sheet perhaps holds the most important place . It attempts, in brief, to display through condensed figures, the true financial condition of an individual or financial unit at a given time. Nearly all other financial statements support it or are based upon it. Every item to which an organization holds title or legal claim, and likewise every claim against it has its place in that organization's balance sheet. It is the vital statement in any broad scheme of recording ownerships.

Recent Tendencies In Railroad Finance, Junius George Klumb

Bachelors’ Theses

In 1920 the railroads of this country comprised a system of over one-quarter of a million miles of road, reckoning one mile of double track as only one mile of road. The country's mileage was greater than the combined mileage of the countries of Europe, and equal to more than one-third of the mileage of the world.

Financial Statements As Basis For Credit Granting, Albert N. Loth

Bachelors’ Theses

In writing this thesis an endeavor has been made to prepare a discussion on the subject f Financial Statements as a basis for credit granting which would be simple and adequate in its treatment of the subject and would set forth the important points relative to such an important subject as this is. Much has been written and said about this topic and an attempt has been made to combine the ideas and viewpoints of bankers, accountants, and merchants in such a manner that the main opinions are expressed in a composite whole.

The Foreign Debt Due The United States Government, Frank D. Winzenburg

Bachelors’ Theses

The era of sentimentalism among governments is past-- whatever may be said of idealism. The cold realities of the war have settled down upon every people. For ourselves we can not separate our motives and say: this we did in defense of rights contravened on the high seas--that we did to make the world "safe for democracy." The fighting is over, peace is declared, but the war remains with us in its costs and burdens, and will so remain for more than a generation. Every people knows this--some feel it far more sensibly than our own. Complete acceptance of the …

Banking Reforms During The Last Century, Alfred E. Bentzin

Bachelors’ Theses

Banking of today is a truly complex science. It is a fundamental part of our present social system and is a basic element in our economic life. From the crude early stages of money lending, down to our own intricate system of capital raising, banking has been influenced favorably or adversely by the current political issues, by the prevailing social opinions and by the economic condition of the day. It has passed through many storms; it has been tested in the crucible of many panics. I has emerge scarred and shaken, but still impact.