EconPapers    
Economics at your fingertips  
 

Using REIT Data to Assess the Economic Worth of Mega-Events: The Case of the 2020 Tokyo Olympics

Ryoh Ogawa

MPRA Paper from University Library of Munich, Germany

Abstract: This paper proposes an alternative approach to evaluate the effects of hosting mega-events, such as the Olympics, Football World Cup, and World Expo. Based on capitalization hypothesis, previous literature studies examined whether the announcement of mega-events affects prices of firms’ stock or real estate property. In contrast, I utilize data on Real Estate Investment Trust (REIT), whose price is a hybrid of stock and property. The standard event study methodology with high-frequent data allows the estimation of abnormal returns due to the mega-event of interest, and clarifies the relationship between level of returns and characteristics of REIT’s property. I present an empirical example—the 2020 Tokyo Olympics—and the results are as follows: 1) investors judged that the comprehensive effects would be positive; 2) the effect becomes smaller as the distance from Host City (Tokyo-to) increases; 3) even in areas far from Tokyo-to, real estate used for hotels and commercial facilities are relatively susceptible to the Olympics.

Keywords: mega-events; Olympic Games; Real Estate Investment Trust; event study (search for similar items in EconPapers)
JEL-codes: G14 L83 R30 R53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-spo and nep-ure
Date: 2017-05-01
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)
https://mpra.ub.uni-muenchen.de/78829/1/MPRA_paper_78829.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/81025/8/MPRA_paper_81025.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/88029/1/MPRA_paper_88029.pdf revised version (application/pdf)

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:pra:mprapa:78829

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2018-07-22
Handle: RePEc:pra:mprapa:78829