Xie, Lingshan;
Milcheva, Stanimira;
(2024)
Proximity to COVID-19 Cases and REIT Equity Returns.
Journal of Real Estate Finance and Economics
10.1007/s11146-024-09991-2.
(In press).
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Abstract
We conduct a quasi-natural experiment for Hong Kong to explore the spatial effects associated with proximity to Covid-19 infections on real estate equity performance. During the first months of the pandemic, Hong Kong reported daily roadmaps of Covid-19 cases. We use these to match with the locations of properties held by real estate companies. Using a difference-in-differences spatial discontinuity model, we find that real estate firms which own a property within 0.1 miles from an infectious site are associated with 0.23% significantly lower daily returns one day after the news. We find evidence for spillover effects for up to two miles from the Covid-19 case, and more pronounced effects on small firms. The paper provides novel findings about the spatial effects of Covid-19 news on stock markets.
| Type: | Article |
|---|---|
| Title: | Proximity to COVID-19 Cases and REIT Equity Returns |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s11146-024-09991-2 |
| Publisher version: | https://doi.org/10.1007/s11146-024-09991-2 |
| Language: | English |
| Additional information: | This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. |
| Keywords: | Proximity to Covid-19 infectious sites, Listed real estate company returns, Diference-in-diferences spatial discontinuity, Spatial Covid-19 efects |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10194899 |
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