External Values Research Articles

Better Prediction of Clinical Outcome with Estimated Glomerular Filtration Rate by CKD-EPI 2021.

While the real-world impact of estimated glomerular filtration rate (eGFR) equation change on clinical outcome in a longitudinal cohort setting is limited, external valuation of equation performance should be performed in different population cohorts. This study aimed to compare differential impacts of eGFR values, calculated by 5 equations in a Korean patient population, on clinical outcomes. This retrospective longitudinal follow-up cohort study analyzed 23 246 participants with standardized creatinine/cystatin C assay-based laboratory results. The primary exposure was baseline eGFR calculated by 5 different equations including the recently developed 2021 race-free Chronic Kidney Disease Epidemiology Collaboration (CKD-EPI) equations. Clinical outcomes including all-cause mortality, renal replacement therapy, and albuminuria were analyzed to estimate the hazard ratio of the eGFR on clinical outcomes. Among the 5 equations, CKD-EPI 2021 with creatinine and cystatin C (CKD-EPI 2021-CrCys) showed an earlier increase in hazard ratios for all clinical outcomes, while CKD-EPI 2012 with cystatin C showed a higher hazard ratio for all-cause mortality at low eGFR. Replacing CKD-EPI 2012 with CKD-EPI 2021-CrCys, 5.4% of patients with mortality and 3.3% of patients who received renal replacement therapy were reclassified to a lower risk stage. The 2021 CKD-EPI equations were acceptable in a Korean population, with better predictive power for clinical outcomes when compared to previous equations. The updated race-free factors for eGFR calculation improved identification of patients at risk for clinical outcomes.

Estimation of Tax Benefit of US Nonprofit Hospitals

Nonprofit hospitals are under increasing scrutiny to justify the generous tax benefit they receive due to their tax-exempt status. Quantifying the value of the tax benefit they receive at the federal, state, and local levels is critical for designing informed public health policies and ensuring nonprofit hospitals' taxpayer accountability. To estimate the financial benefit that nonprofit hospitals derive from their tax-exempt status and assess how the benefit is distributed across state and local communities. Using methodologies and measures consistent with current tax law and practice and data from 2021 Medicare Cost Reports, this study calculated the total financial benefit from nonprofit hospitals' tax-exempt status for all US nonprofit hospitals with the required Cost Reports data. Nonprofit hospitals' total tax benefit, which equals the sum of federal and state income tax, sales tax, property tax, the fair market value of charitable contributions from donors, savings from tax exemptions on issued bonds, and federal unemployment tax. A total of 2927 US nonprofit hospitals received a $37.4 billion total tax benefit in 2021 from federal income tax ($11.5 billion; 31%), sales tax ($9.1 billion; 24%), property tax ($7.8 billion; 21%), state income tax ($3.7 billion; 10%), charitable contributions ($3.2 billion; 8%), bond financing ($2.1 billion; 6%), and federal unemployment tax ($200 million; <1%). Tax benefit varied substantially across states, from $25 098 (Delaware) to $159 464 (Massachusetts) per hospital bed and from $19 (Alabama) to $275 (Massachusetts) per capita. Tax benefit was highly concentrated, with 7% (n = 212) of hospitals accounting for half of the total amount. This study highlights the wide variation of nonprofit hospitals' tax benefit across states, its high concentration among a small number of hospitals, and the primary role played by state and local taxes. Policy efforts to strengthen nonprofit hospitals' taxpayer accountability are likely to be more effective when pursued at the local level. The detailed standardized estimation road map can be used by various stakeholders to estimate tax benefit for external valuation and reporting purposes, updated as laws change, and improved upon as better data sources become available.

Internalization of External Cost in the Thermal Power Generation on Social Welfare Maximization

For decades, Kenya has incorporated thermal power technology into its grid to generate electrical energy using fossil fuels such as petroleum, natural gas, and coal. The burning of fossil fuels has become a major source of air pollutants and is associated with several undesirable side effects on the environment and human health. However, the impact of pollutants on environmental sustainability and public welfare has yet to be evaluated. Therefore, the purpose of this study is to evaluate the external cost of electricity generated by thermal power plants in Kenya. Both survey data and secondary data were used. The analysis was conducted using externality valuation and welfare maximization approaches, and the research hypotheses were tested using a negative binomial regression model. The annual external cost ($/2022) was determined to be $ 1,333,904,970.76, with the following distribution: environmental at $ 993,488,336.26, Public health at $ 86,760,038.01, and socio-economic at $ 253,656,596.49. Equally, the thermal power generation marginal social cost ($/2022) was determined to be 1.22 $cents/kWh with the following distribution: Marginal Private Cost (MPC) at 0.01 $cents/kWh and Marginal External Cost (MEC) at 1.21 $cents/kWh. The established marginal social cost (MSC) (i.e. Σ MPC+MEC) was 1.22 ($cents/kWh). Thus, MSC is significantly greater than the established social marginal benefit (SMB) of 0.089 ($ cents/kWh); hence, we conclude that the burden of social welfare loss is highly significant, making thermal power a non-sustainable and economic energy source.

How firms respond to external valuation: Evidence from the monitoring role of media

AbstractThis study explores how media evaluations affect corporate capital investments. I show that media evaluations of firms affect corporate capital investments via the reputation mechanism, that is, a more negative media evaluation of the firm will motivate managers to give up inefficient investments. Meanwhile, a higher quantity of news underlying news evaluation and good firm performance strengthen the positive effect of media evaluation on corporate investments, whereas a higher level of divergence of news evaluation weakens the positive effect of media evaluation on corporate investments.

Formal and informal institutions and fair value opinion shopping: an institutional anomie theory perspective

PurposeThe objective of this study is to examine how formal and informal institutional environment influences managers’ fair value opinion shopping behaviour in the largest International Financial Reporting Standards adopter, China.Design/methodology/approachTo test the hypotheses, I conduct a 2 × 2 between-subject randomised experiment since the inferences about cause and effect are important in this study. The between-subject experimental situations are manipulated on the basis of the financial condition of companies and boards’ oversight.FindingsI find that managers are likely to seek favourable fair value opinions from external valuation professionals when they are under the weak boards’ oversight and high stress to meet the regulation target of the China Securities Regulatory Commission. These results are more pronounced for managers with higher both rent-seeking and favour-seeking guanxi orientations are more likely to engage in fair value opinion shopping.Originality/valueConsistent with theoretical analysis of Balfoort et al. (2017), this study provides empirical evidence that guanxi influences the neutrality and faithful representation in fair value measurement in China. In addition, the findings extend Salzsieder’s study (2015) and reflect the context-embeddedness nature of accounting.

Internalizing the external costs of renewable energy projects through stepwise method-a comparative study

This paper suggests an impact assessment of the anaerobic digestion and gasification projects for the case of a wastewater treatment plant (WWTP) in France. The biogas generated is valorized from combined heat and power (CHP) system. The goal of this paper is to evaluate the environmental external costs of these two projects by using a method based on Life Cycle Impact Assessment (LCIA), in order to have a comprehensive balance that helps decision-making. In fact, the monetary valuation of externalities is a decision-making tool for determining the social level of pollution. Besides, the Stepwise method deployed in the current analysis has the advantage of being at the same time a LCIA method and a new method of monetization. Therefore, the stepwise method offers a new monetization procedure that aims to reduce the uncertainty and incompleteness in the monetization of environmental impacts. According to our results, the internalization of the external costs with the Stepwise approach negatively affects the net present values (NPV) of these projects and the gasification project becomes less profitable than the anaerobic digestion project. In addition, the external costs represent 42% of the total investment costs of WWTP for gasification and 35% for anaerobic digestion. In terms of energy policy, our results have two main implications. First, our results have raised the importance of conducting an approach that uses several techniques to arrive at more relevant results that help in decision making. Second, our results can also serve as an example for other countries with similar characteristics to France in their Renewable Energy (RE) promotion policies.

Tackling Root Causes Upstream of Unhealthy Urban Development (TRUUD): Protocol of a five-year prevention research consortium.

Poor quality urban environments substantially increase non-communicable disease. Responsibility for associated decision-making is dispersed across multiple agents and systems: fast growing urban authorities are the primary gatekeepers of new development and change in the UK, yet the driving forces are remote private sector interests supported by a political economy focused on short-termism and consumption-based growth. Economic valuation of externalities is widely thought to be fundamental, yet evidence on how to value and integrate it into urban development decision-making is limited, and it forms only a part of the decision-making landscape. Researchers must find new ways of integrating socio-environmental costs at numerous key leverage points across multiple complex systems. This mixed-methods study comprises of six highly integrated work packages. It aims to develop and test a multi-action intervention in two urban areas: one on large-scale mixed-use development, the other on major transport. The core intervention is the co-production with key stakeholders through interviews, workshops, and participatory action research, of three areas of evidence: economic valuations of changed health outcomes; community-led media on health inequalities; and routes to potential impact mapped through co-production with key decision-makers, advisors and the lay public. This will be achieved by: mapping system of actors and processes involved in each case study; developing, testing and refiningthe combined intervention; evaluating the extent to which policy and practice changes amongst our target users, and the likelihood of impact on non-communicable diseases (NCDs) downstream. The integration of such diverse disciplines and sectors presents multiple practical/operational issues. The programme is testing new approaches to research, notably with regards practitioner-researcher integration and transdisciplinary research co-leadership. Other critical risks relate to urban development timescales, uncertainties in upstream-downstream causality, and the demonstration of impact.

Establishing long-term nitrogen response of global cereals to assess sustainable fertilizer rates

Insight into the response of cereal yields to nitrogen fertilizer is fundamental to improving nutrient management and policies to sustain economic crop benefits and food sufficiency with minimum nitrogen pollution. Here we propose a new method to assess long-term (LT) regional sustainable nitrogen inputs. The core is a novel scaled response function between normalized yield and total net nitrogen input. The function was derived from 25 LT field trials for wheat, maize and barley in Europe, Asia and North America and is fitted by a second-order polynomial (R2 = 0.82). Using response functions derived from common short-term field trials, with soil nitrogen not in steady state, gives the risks of soil nitrogen depletion or nitrogen pollution. The scaled LT curve implies that the total nitrogen input required to attain the maximum yield is independent of this maximum yield as postulated by Mitscherlich in 1924. This unique curve was incorporated into a simple economic model with valuation of externalities of nitrogen surplus as a function of regional per-capita gross domestic product. The resulting LT sustainable nitrogen inputs range from 150 to 200 kgN ha−1 and this interval narrows with increasing yield potential and decreasing gross domestic product. The adoption of LT response curves and external costs in cereals may have important implications for policies and application ceilings for nitrogen use in regional and global agriculture and ultimately the global distribution of cereal production.

Value-relevance of reported changes in fair values and measurement-related fair value disclosures: evidence from the Australian real estate industry

PurposeThe paper aims to investigate the value-relevance of changes in fair values of investment property reported under International Accounting Standards (IAS) 40 and International Financial Reporting Standards (IFRS) 13.Design/methodology/approachMultivariate regression models are used to regress cumulative market-adjusted stock returns of real estate firms on changes in fair values, along with control variables and corporate governance variables, in order to examine the research question.FindingsUsing hand-collected data from the Australian Real Estate Industry (AREI), the authors find that changes in fair values of investment property are value-relevant for equity investors. The authors further find that using unobservable inputs in an active market (Level 3 inputs) does not diminish the information content of fair values. The authors document that properties valued exclusively by directors have a significantly reduced value-relevance, whereas property valuations made collectively by both directors and independent valuers have superior value-relevance, possibly owing to the combination of inside knowledge and externally imposed monitoring. Collectively, the findings suggest that in the real estate industry, where unobservable inputs are commonly used to determine fair values of properties, the fair values determined subjectively are perceived to be sufficiently informative and relevant.Research limitations/implicationsThe authors' findings have important implications for accounting standard-setters in considering whether an external valuation should be required and whether the extensive measurement-related fair value disclosure requirements are useful.Originality/valueThe study extends previous archival evidence and complements prior commentaries on experimental and analytical work in the Australian regulatory environment.

Measuring the monetary value of environmental externalities derived from urban underground facilities: Towards a better understanding of sustainable underground spaces

The development of underground spaces has been regarded as a major contributor to urban environmental sustainability. However, insufficient attention has been paid to the environmental externalities of urban underground facilities (UUFs) due to the lack of a bespoke tool for the identification and monetary valuation of such externalities, resulting in the irrational use of underground spaces. To this end, this study systematically explores the categories of environmental externalities tailored to UUFs, considering both environmental contributions and losses. Furthermore, the framework of the replacement/restoration cost method (RCM) was employed to measure the environmental externalities of UUFs in monetary terms, and the framework was then applied to a series of representative UUFs in China as a case study. The results indicate that the monetary value of the environmental externalities derived from UUFs is non-negligible compared to its construction cost, and the positive externalities dramatically outweigh the negative ones. In addition, there are apparent differences in the constituents of externalities among different types of UUFs. It is found that the effects of energy conservation, air pollution and noise pollution prevention proved to be the main contributions of UUFs to sustainability. This study aims to provide a useful model for the identification and measurement of the environmental externalities derived from UUFs, thus aiding in the decision support of underground space planning, as well as obtaining a sound understanding of the role of underground spaces in sustainable development.

Tackling Root Causes Upstream of Unhealthy Urban Development (TRUUD): Protocol of a five-year prevention research consortium

Poor quality urban environments substantially increase non-communicable disease. Responsibility for associated decision-making is dispersed across multiple agents and systems: fast growing urban authorities are the primary gatekeepers of new development and change in the UK, yet the driving forces are remote private sector interests supported by a political economy focused on short-termism and consumption-based growth. Economic valuation of externalities is widely thought to be fundamental, yet evidence on how to value and integrate it into urban development decision-making is limited, and it forms only a part of the decision-making landscape. Researchers must find new ways of integrating socio-environmental costs at numerous key leverage points across multiple complex systems. This mixed-methods study comprises of six highly integrated work packages. It aims to develop and test a multi-action intervention in two urban areas: one on large-scale mixed-use development, the other on major transport. The core intervention is the co-production with key stakeholders through interviews, workshops, and participatory action research, of three areas of evidence: economic valuations of changed health outcomes; community-led media on health inequalities; and routes to potential impact mapped through co-production with key decision-makers, advisors and the lay public. This will be achieved by: mapping system of actors and processes involved in each case study; developing, testing and refining the combined intervention; evaluating the extent to which policy and practice changes amongst our target users, and the likelihood of impact on non-communicable diseases (NCDs) downstream. The integration of such diverse disciplines and sectors presents multiple practical/operational issues. The programme is testing new approaches to research, notably with regards practitioner-researcher integration and transdisciplinary research co-leadership. Other critical risks relate to urban development timescales, uncertainties in upstream-downstream causality, and the demonstration of impact.

Tackling Root Causes Upstream of Unhealthy Urban Development (TRUUD): Protocol of a five-year prevention research consortium

Poor quality urban environments substantially increase non-communicable disease. Responsibility for associated decision-making is dispersed across multiple agents and systems: fast growing urban authorities are the primary gatekeepers of new development and change in the UK, yet the driving forces are remote private sector interests supported by a political economy focused on short-termism and consumption-based growth. Economic valuation of externalities is widely thought to be fundamental, yet evidence on how to value and integrate it into urban development decision-making is limited, and it forms only a part of the decision-making landscape. Researchers must find new ways of integrating socio-environmental costs at numerous key leverage points across multiple complex systems. This mixed-methods study comprises of six highly integrated work packages. It aims to develop and test a multi-action intervention in two urban areas: one on large-scale mixed-use development, the other on major transport. The core intervention is the co-production with key stakeholders through interviews, workshops, and participatory action research, of three areas of evidence: economic valuations of changed health outcomes; community-led media on health inequalities; and routes to potential impact mapped through co-production with key decision-makers, advisors and the lay public. This will be achieved by: mapping system of actors and processes involved in each case study; developing, testing and refiningthe combined intervention; evaluating the extent to which policy and practice changes amongst our target users, and the likelihood of impact on non-communicable diseases (NCDs) downstream. The integration of such diverse disciplines and sectors presents multiple practical/operational issues. The programme is testing new approaches to research, notably with regards practitioner-researcher integration and transdisciplinary research co-leadership. Other critical risks relate to urban development timescales, uncertainties in upstream-downstream causality, and the demonstration of impact.

What’s the damage? Monetizing the environmental externalities of the Dutch economy and its supply chain

The environmental externalities of economic activities, such as anthropogenic climate change and pollution, have major social, environmental and economic consequences. Monetary valuation of these externalities is a widely acclaimed approach to better account for them in economic decisions, as it provides an appropriate price level for charging a Pigouvian tax. Yet, little research exists on the monetary valuation of the environmental externalities associated with Dutch economic activities and the impact of pricing them on the profitability of different sectors. To address this gap, this paper estimates the monetary value of 30 environmental externalities associated with the activities of 13 sectors and 163 subsectors for the year 2015, based on a global environmentally extended input-output model. It then compares these environmental costs with the financial performance of the sectors to provide an appraisal of potential profit at risk. The findings show that total environmental damage costs associated with the Dutch economy amount to EUR 50 Bn or 7.3% of Dutch GDP in 2015. They also demonstrate that some sectors (energy production, waste and sewage treatment, manufacturing, transport and agriculture) do not generate sufficient profit to cover their natural resource use and pollution costs. These sectors are particularly exposed to the transition risks associated with the internalization of these costs through, for instance, taxation or stricter regulation. It is especially important for financial institutions to be aware of the presence of these risks. The analysis within this research could help to introduce and improve standards and systems, including relevant regulations aimed at internalizing the external costs of production, extraction and consumption. Moreover, these tools can also support financial institutions to inform their heat mapping exercises, the assessment of materiality and/or measurement of environmental transition risks more broadly.

Physician-scientist or basic scientist? Exploring the nature of clinicians' research engagement.

Theoretical understanding of what motivates clinician researchers has met with some success in launching research careers, but it does not account for professional identification as a factor determining sustained research engagement over the long-term. Deeper understanding of clinicians' research-related motivation may better foster their sustained research engagement post-training and, by extension, the advancement of medicine and health outcomes. This study used an integrated theoretical framework (Social Cognitive Career Theory and Professional Identity Formation) and appreciative inquiry to explore the interplay of professional identification and research context in shaping post-training research success narratives. To foreground professional identification, 19 research-active clinicians and 17 basic scientists served as interviewees. A multi-institutional, multi-national design was used to explore how contextual factors shape external valuation of research success. The findings suggest that research-active clinicians do not identify as the career scientists implied by the modern physician-scientist construct and the goal of many clinician research-training programs. Their primary identification as care providers shapes their definition of research success around extending their clinical impact; institutional expectations and prevailing healthcare concerns that value this aim facilitate their sustained research engagement. Integrated developmental and organizational interventions adaptive to research context and conducive to a wider range of medical inquiry may better leverage clinicians' direct involvement in patient care and advance progress toward human health and well-being.

Monetary Valuation and Internalization of Externalities in German Agriculture Using the Example of Nitrate Pollution: A Case-Study

Plants are dependent on nitrogen for their growth. However, if more plant nutrients are deposited than the plant can absorb, the excess nitrogen seeps into the soil where it accumulates as nitrate. About 74% of the drinking water produced in Germany comes from groundwater. The legal limit of 50 milligrams of nitrate per liter of fresh water is exceeded frequently in Germany, especially in agricultural areas. High levels of nitrate in drinking water can quickly lead to health issues, under certain conditions. The nitrate problem is omnipresent in Germany. However, studies which determine the externalized costs of nitrogen eutrophication are mostly missing. The present study closes this gap by combining the results of a transdisciplinary investigation from hydrological analyses and environmental-economic calculations. Water samples were taken from a deep well in Hauneck, which is a municipality in Hesse (Germany). Afterwards, an isotope analysis was carried out to determine the groundwater residence time and possible sources of nitrate. Thus, in addition to the sources of pollution, concrete social costs were determined, using a damage cost approach as well as an avoidance cost approach. For Hauneck, it was found that about 54% of the drinking water price is directly linked to the externalization of costs. These are borne via the principle of the common burden. In addition, the isotope investigations have shown that the removal of excess nitrate will continue for decades, which will lead to long term external costs. The paper reveals how the internalization of these costs can contribute to the conservation of water resources.

Stock compensation expense, cash flows, and inflated valuations

This paper reviews the statement of cash flow implications of stock compensation expense and the effect it can have on valuations. The paper suggests that treating stock compensation as a noncash item in the statement of cash flows can be misleading from internal decision-making and external valuation perspectives. This is important, given the increasing role of non-GAAP cash flow disclosures in financial reporting as well as their use internally by managers. The paper quantifies the potential size of the problem and suggests potential solutions, including treating stock compensation expense as an operating cash outflow and a financing cash inflow, adding further descriptive disclosures to the financial statements, or both. Finally, the paper also highlights a similar issue that occurs with the cash flow implications of finance leases.

Relevancia valorativa de los intangibles: Análisis pre-NIIF y NIIF en el mercado de capitales argentino

El objetivo de este trabajo es analizar el efecto de la adopción de las NIIF en la relevancia que el mercado de capitales argentino asigna a la información financiera sobre activos intangibles y a la información no financiera referida al capital intelectual de las empresas que cotizan en el mismo.&#x0D; El análisis se realiza aplicando modelos de precios basados en Ohlson (1995), con datos recolectados directamente de fuentes originales y correspondientes al período 2009-2015.&#x0D; Los resultados revelan que la adopción de las NIIF produjo cambios en la relevancia valorativa de los activos intangibles, pero no ha impactado en la relevancia valorativa del capital intelectual. Además, muestran que las dimensiones humana y estructural no son consideradas por los inversores, en ninguna de las dos etapas (NIIF y pre-NIIF), mientras que el capital estructural tiene un impacto negativo en los precios en ambos períodos.&#x0D; Estos hallazgos son acordes a los aportados por los estudios previos y, en particular, los referidos al capital intelectual, son similares a los obtenidos para países de bajo desarrollo, donde no se han logrado evidencias que apoyen su relevancia valorativa. Contribuyen, de este modo, a acrecentar la evidencia existente en torno al papel de los intangibles en la valoración externa de las empresas y a las implicaciones que en ello ha tenido la aplicación del marco normativo del IASB, la cual es particularmente limitada para mercados poco desarrollados.

A methodology for the technical-economic analysis of municipal solid waste systems based on social cost-benefit analysis with a valuation of externalities.

Countries face a serious problem due to the generation and management of higher volumes of waste. Large-scale production of waste has promoted the establishment of various operations (collection, transport, treatment and disposal) for its management. When a MSW management system is implemented, it can generate different impacts or consequences (internal or external impacts). Generally, external impacts (social and environmental impacts) are not reflected in MSW economic analysis or taken into consideration in decision-making processes in regard to MSW management options. For this reason, the objective of this paper is present a methodology with which is viable to conduct the technical-economic analysis of municipal solid waste management projects based on social cost-benefit analysis (sCBA) as it considers internal and external impacts. Its main objectives are to determine the total benefits (the difference between revenues and costs) generated by a project and to reduce uncertainty and risk of investing in particular MSW management system. Finally, a case study was carried out to verify the validity of the methodology through analysis and valuation of different impacts of a light packaging waste and bulky waste facility. Through the application of the methodology, it has been possible to visualize that this facility is viable operationally (BP = 42.94€/ton) as economically (BT = 87.73€/ton).

Public preferences for setting up a biomass power plant to combat open-field burning of rice crop residues: A case study of district Sangrur, Punjab, India

Open field burning of rice crop residues in Punjab, India is a annual feature which is a serious environmental concern as thick smog engulfs the entire region, air quality index reaches to alarming levels and people struggle to breathe in the highly polluted air. The present study is an attempt to evaluate, in monetary terms, the willingness of people that a biomass based power plant be set up so that the practice of open field burning is halted. The willingness to pay (WTP) of people has been studied in Sangrur district, Punjab using Discrete Choice Experiments. Respondents representing the actual demographic of the district were randomly selected for the experiment. The study revealed that the highest WTP ( ₹ 187) was observed for the economic benefits of the power plant, that is, increase in revenue of the farmers and, employment and training opportunities for the locals. This was followed by the WTP for benefits that biomass based power plant would offer by reducing the health risks (₹ 165) associated with the burning of rice crop residues. The results of the study thus provide economic valuations of externalities associated with open field burning as well as underline the directions for bioenergy development in the state of Punjab, India.

The role of investment property appraisal in European real estate companies

Purpose This paper aims to examine the connection between appraisals of investment properties and earnings properties in companies from two perspectives: what kinds of companies employ the most reputable appraisers and how appraisers produce estimations. Design/methodology/approach The research uses annual reports of European Union (EU) publicly traded real estate companies and examines the period 2007-2016. Findings The contribution of this study lies in establishing that some indicators and features of real estate companies affect the choice of appraiser and also in illustrating differences in the results of property valuations. In short, smaller companies with weaker performance are less willing to use external valuation, and external appraisers produce more conservative estimations for investment properties. Practical implications The research produces beneficial information for investors and other stakeholders interested in the real estate industry. Originality/value This is the first novel study to examine the link between appraisals of investment properties and earnings properties in companies in detail.