Geopolitical risk and real estate stock crash

Emmanuel Abakah, Mohammad Abdullah, Omokolade Akinsomi and Aviral Kumar Tiwari

Finance Research Letters, 2025, vol. 80, issue C

Abstract: We investigate the effect of geopolitical risk (GPR) on real estate stock crashes while accounting for the impact of cash holdings and financial constraints in this relationship. Using a dataset from 28 countries covering the period of 2000 to 2023 from 1805 firms, we document that geopolitical risk increases real estate stock price crash risk. Our result remains consistent using an alternate proxy of geopolitical risk and even after considering endogeneity concerns using 2SLS and Entropy balanced samples. Our result shows the negative impact of GPR is stronger for firms with high cash holdings and high financial constraints.

Keywords: Geopolitical risk; Real estate firm; Crash risk; Stock performance (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325005963
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325005963

DOI: 10.1016/j.frl.2025.107333

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().