Abstract
This study investigates the impact of Internet usage on the financial perormance of residential real estate brokerage firms using a database of over 1,700 observations. Factor loadings and a factor score or Internet usage are developed. The results show that Internet use is positively related to revenue and net income, and negatively related to net margin. In a second stage analysis, Internet use is ound to be positively associated with franchise affiliation, affiliation with a referral/relocation network and firm size, while negatively related to firm age, single-office firms and location in the West and South (relative to the Northeast).
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