How do Personal Real Estate Transactions Affect Productivity and Risk Taking? Evidence from Professional Asset Managers
David Ling (),
Yan Lu and
Real Estate Economics, 2021, vol. 49, issue S1, 7-40
We examine the personal real estate transactions of professional asset managers to understand the effect of these transactions on professional productivity and risk proclivities. We find that real estate acquisitions lead to distractions, as evidenced by reduced performance, less active trading, and increased susceptibility to behavioral biases such as the disposition effect. We also find evidence that managers tend to increase the riskiness of their professional portfolios after real estate purchases, especially when purchasing investment properties and when purchases use extensive leverage. This suggests consistent risk‐taking appetites across personal and professional portfolios.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:reesec:v:49:y:2021:i:s1:p:7-40
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1080-8620
Access Statistics for this article
Real Estate Economics is currently edited by Crocker Liu, N. Edward Coulson and Walter Torous
More articles in Real Estate Economics from American Real Estate and Urban Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().