Suchergebnisse

We construct a production‐based model, which compares the investment return behaviour of liquidity‐constrained firms with that of unconstrained firms. The key testable implication that emerges from the model is that the investment returns of the constrained firms are predictable, while those of the unconstrained firms are not. We test this implication indirectly, verifying whether the capital stock and investment returns of the latter firms lead those of the former, and directly, via the estimation of an Euler equation. Our results are consistent with the model's prediction.

Purpose
The purpose of this paper is to discuss the principal measures of performance used in property and other investment types. In particular, the briefing will explore the relationship of the expected IRR with the initial return, highlighting the role of growth in the investment dynamic.


Design/methodology/approach
This education briefing is an overview of investment growth models with worked examples.


Findings
The analysis of property growth models is akin to the Fisher and Gordon growth models used in other finance markets.


Practical implications
This comparison of the models can work for all forms of investment. Similarly, instead of looking at the overall return as the measure of comparison (expected vs required), it is possible to work backwards and deduce market expectations and compare these with the investors view on those variables.


Originality/value
This is a review of existing models.

Building information modeling (BIM), the emerging digital technology, is undergoing increasing application in developing countries including China. Both the governmental policy and industry motivation have indicated that BIM is becoming the mainstream innovation in China's construction industry. Nevertheless, one major concern lies in the uncertainty of BIM investment for architecture, engineering, and construction (AEC) firms. Specifically, AEC firms should have the knowledge of areas BIM investment could focus on (such as BIM software); the expected returns from BIM investment; methods to enhance the returns from BIM usage; and the risks in implementing BIM. This study adopted a questionnaire survey–based approach to address these concerns related to BIM application and risk in China. BIM practitioners from multiple AEC fields and different experience levels were recruited as the survey sample. It was found from the questionnaire survey that both internal and external collaborations should be the BIM investment priority, together with the interoperability among multiple BIM software tools. Improved multiparty communication and understanding was the highest recognized return from BIM investment. Survey participants had a high expectation of BIM application in green building projects. Subgroup analysis conveyed the information that gaining BIM practical experience would provide professionals with more confidence on returns from BIM adoption in enhancing communication and understanding. Compared to survey participants from other professions, architects tended to have more conservative views on BIM's effect on marketing their work, project planning, and recruiting/retaining employees. The findings from this empirical study provide an overview of BIM investment, return, and implementation-related risks for AEC professionals at different stages or levels of BIM practice, as well as suggestions for relevant public authorities when developing BIM guidelines (e.g., BIM applications in prefabrication construction). As ...