António Manuel Cunha, Ana Pinto Borges and Miguel Ferreira
This study aims to study the sensitivity of nonlisted real estate investment companies’ accounting earnings to house prices. This study evaluates whether house price changes…
Abstract
Purpose
This study aims to study the sensitivity of nonlisted real estate investment companies’ accounting earnings to house prices. This study evaluates whether house price changes determined these companies’ return on equity (ROE) or if other factors influenced the industry’s profitability beyond house price growth.
Design/methodology/approach
The authors collected a ten-year sample with the aggregate ROE of Portugal’s real estate investment companies, split by regions, and data on house prices and the per capita gross domestic product as a control variable. The authors ran a national-level time series with the canonical cointegrating regression estimator, which is robust to a small sample size; the authors also performed a regression on regional-level panel data with the common correlated effects mean group estimator, thus allowing slope coefficient heterogeneity and controlling for cross-sectional dependence. The authors also ran ordinary least squares regressions as a means of comparison.
Findings
This study found that an increase in the house price is not translated into an increase in the aggregate ROE. The results are robust with a reduced survivorship-biased sample, meaning that even the best-succeeded real estate investment companies do not have their accounting ROE dependent on house price growth.
Research limitations/implications
The sample size is small and specific to one country. This paper did not study the housing market structure to verify whether it operates under monopolistic competition, which could further explain the attained results.
Practical implications
Policy decision-makers should know that there are no excess profits in the real estate investment companies’ industry because of house price growth that could be subject to windfall taxes.
Originality/value
To the best of the authors’ knowledge, the connections between house prices and real estate investment companies’ accounting earnings have never been studied.
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Ana Cascão, Ana Paula Quelhas and António Manuel Cunha
This paper aims to analyze the heuristics and cognitive biases described by behavioral finance in the investment decision-making process of Portugal’s housing market.
Abstract
Purpose
This paper aims to analyze the heuristics and cognitive biases described by behavioral finance in the investment decision-making process of Portugal’s housing market.
Design/methodology/approach
In a first step, the authors applied an exploratory factor analysis (EFA) to assess the impact of heuristics and cognitive biases on investors’ decision-making. In a second step, the authors run a structural equation model (SEM) diagram path to assess if the sociodemographic characteristics of housing market investors determine the identified heuristics and if the heuristics condition the investors’ investment criteria.
Findings
Herd behavior and the heuristics of representativeness, availability and anchoring influence the housing market’s investors’ behavior in their decision-making process. Investors with above-average income show higher levels of overconfidence. Investors showing higher levels of overconfidence also tend to be more sensitive to the house price under analysis for investment. Women tend to show higher levels of the availability and anchoring heuristic. In turn, housing market investors showing higher levels of availability and anchoring heuristic tend to be more sensitive to the price and location of the house under analysis for investment.
Research limitations/implications
The explained variance of the EFA is below 50%, and the root mean square of approximation of the SEM is above the threshold of 0.05. These indicators are evidence of the models’ fragility.
Practical implications
Governments and regulators can better prevent real estate bubbles if they monitor behavioral biases and heuristics of housing investors together with quantitative indicators. Realtors can profit from adapting their marketing strategy and commercial communication to investors of sociodemographic groups more prone to a specific type of heuristics.
Originality/value
To the best of the authors’ knowledge, this is the first study that combines the contributions of behavioral finance with Portugal’s housing investment market and the first study connecting heuristics to investment criteria.
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António Manuel Cunha and Júlio Lobão
This paper aims to explore the effects of a surge in tourism short-term rentals (STR) on housing prices in municipalities within Portugal’s two largest Metropolitan Statistical…
Abstract
Purpose
This paper aims to explore the effects of a surge in tourism short-term rentals (STR) on housing prices in municipalities within Portugal’s two largest Metropolitan Statistical Areas.
Design/methodology/approach
This study applies the difference-in-differences (DiD) methodology by using a feasible generalized least squares (FGLS) estimator in a seemingly unrelated regression (SUR) equation model.
Findings
The results show that the liberalization of STR had a significant impact on housing prices in municipalities where a higher percentage of housing was transferred to tourism. This transfer led to a leftward shift in the housing supply and a consequent increase in housing prices. These price increases are much higher than those found in previous studies on the same subject. The authors also found that municipalities with more STR had low housing elasticities, which indicates that adjustments to the transfer of real estate from housing to tourism were made by increasing house prices, and not by increasing supply quantities.
Practical implications
The study suggests that an unforeseen consequence of allowing property owners to transfer the use of real estate from housing to other services (namely, tourism) was extreme housing price increases due to inelastic housing supply.
Originality/value
This is the first time that the DiD methodology has been applied in real estate markets using FGLS in a SUR equation model and the authors show that it produces more precise estimates than the baseline OLS FE. The authors also find evidence of a supply shock provoked by STR.
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Miguel Pina e Cunha, Stewart R. Clegg and Arménio Rego
In this paper, some peculiarities of a Southern European country are made explicit, namely, how the attraction of new, “global”, management practices combines with deeply…
Abstract
In this paper, some peculiarities of a Southern European country are made explicit, namely, how the attraction of new, “global”, management practices combines with deeply persistent, thus traditional, ways of imagining organization. The dominant Anglo‐Saxon and Protestant models of management may not be fully adequate to characterize management and organization in the Latin Catholic countries of the south, or those postcolonial societies that they inscribed in Latin America. We present an interpretation of why what are glossed by moderns as dysfunctional management practices persist, sometimes despite their recognized inadequacy. The contributions advanced here may thus be relevant to researchers interested in the route of transition from closed to open societies and who are concerned that all models need to be appreciated in context.
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Rejane Santana da Silva, Gustavo Quiroga Souki, Alessandro Silva de Oliveira, Luís Sérgio Gonçalves Vieira and Manuel Serra
This study aimed to investigate the influence of the perceived quality by students regarding their experiences in vocational schools in tourism, hospitality and food service on…
Abstract
Purpose
This study aimed to investigate the influence of the perceived quality by students regarding their experiences in vocational schools in tourism, hospitality and food service on cognitive and affective responses (satisfaction, self-efficacy expectations and self-regulation strategies of motivation for learning - SRSML) and commitment (behavioural response).
Design/methodology/approach
A cross-sectional survey was conducted with 454 students from twelve Turismo de Portugal IP-affiliated schools. The theoretical framework was rooted in Self-Determination Theory (SDT) and PLS-SEM, using ADANCO 2.3 software to test the proposed model.
Findings
Perceived quality by students concerning their school experiences are socio-contextual factors that directly influence their satisfaction and self-efficacy expectations (cognitive and affective responses). Satisfaction and self-efficacy expectations positively affected SRSML. Finally, satisfaction and the SRSML positively impacted the students` commitment to schools (behavioural response).
Originality/value
This study contributes to academia by comprehensively addressing 16 perceived quality dimensions within vocational education. It aligns with SDT, revealing that socio-contextual factors affect students’ cognitive, affective, and behavioural responses. Additionally, it demonstrates positive relationships between student satisfaction, self-efficacy expectations, SRSML, and students’ commitment to vocational education institutions. This study emphasises the multidimensional nature of perceived quality, urging educational institutions to address tangible and intangible dimensions to develop strategies to provide high-quality experiences, increasing students` satisfaction, self-efficacy expectations, motivation, and commitment.
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Teresa Cunha Ferreira, David Ordóñez-Castañón and Rui Fernandes Póvoas
This research seeks to provide methodological bases for the identification, documentation and critical reflection of good practices of architectural design in built heritage…
Abstract
Purpose
This research seeks to provide methodological bases for the identification, documentation and critical reflection of good practices of architectural design in built heritage. These are applied explicitly to the School of Porto architects, which express a high sense of pedagogy and community practice in this field. The methodological approach defines the selection criteria for a georeferenced inventory and the procedures for in-depth analysis of adaptive reuse strategies.
Design/methodology/approach
The works included in the inventory were selected according to geographical, chronological, typological, qualitative and quantitative criteria. The cases chosen for in-depth analysis have been studied along four thematic axes to dissect all the intervention processes (previous state, design/construction and final state). This approach is supported by a cross-analysis of different sources (oral, written, graphic) and using drawing as a fundamental research tool.
Findings
The research has collected and disseminated up to 150 works by 44 architects, providing a comprehensive portrait of heritage intervention by the School of Porto over the past decades. The selection of 22 buildings for in-depth documentation reveals a particular sensibility toward the cultural values through a case-by-case approach based in deep knowledge of the preexisting context and the introduction of contemporary additions in continuity and harmonious relation with the environmental and sociocultural context.
Originality/value
This work provides a novel methodology suitable for further extension and adaptation to other case studies, as a first contribution to a more comprehensive “Atlas of Architectural Design in Built Heritage” with European case studies. The research aims to introduce new and deeper perspectives on reference works that may constitute pedagogy for the future practice of architects within contextual, inclusive and sustainable approaches.
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Cristian Armando Yepes-Lugo, Robert Ojeda-Pérez and Luz Dinora Vera-Acevedo
This paper aims to evaluate the evolution of the organizational field in the Colombian coffee industry between 1960 and 2020 and explain how peripheral actors influenced…
Abstract
Purpose
This paper aims to evaluate the evolution of the organizational field in the Colombian coffee industry between 1960 and 2020 and explain how peripheral actors influenced institutional change.
Design/methodology/approach
The methods analyze historical processes from a hermeneutical and interpretative perspective. The authors used data collection techniques through interviews, archive data, publications and media reports, embracing an interdisciplinary and qualitative documentary approach. This approach helps the authors unravel the temporal dimensions of the historical discourse related to coffee and the involvement of various actors within organizational structures.
Findings
The authors found that, unlike the literature regarding the change in organizational fields, recently, within the coffee sector in Colombia, the institutional work of peripheral actors (small producers, local associative groups and coffee women, among others) is changing the field as follows: (1) women are changing traditional behaviors moving from hierarchical family structures and lack of gender awareness, to empowered, horizontal and sustained relationships, (2) indigenous people include rituals and other traditional practices in coffee production and (3) ex-guerrilla members are helping to strengthen the peace process implementation in Colombia through coffee production.
Research limitations/implications
The authors did not conduct statistical or computational analysis to simulate the emergence of new organizational forms. Instead, the authors attempted to elucidate narratives and discourses that reflect the tensions between central and peripheral actors from a historical perspective.
Practical implications
This study seeks to help leaders and managers overcome processes or organizational change in which peripheral actors are crucial. From that perspective, allocating resources and capabilities can become more effective.
Originality/value
This paper offers a new perspective of change within organizational fields from the roles of peripheral actors, which are fundamental in change processes within organizational fields, especially in the global south, where tensions between elites and vulnerable people are familiar.
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The purpose of this paper is to draw on available data regarding the historical event of the major Lisbon earthquake of 1755 in order to understand the governance structure that…
Abstract
Purpose
The purpose of this paper is to draw on available data regarding the historical event of the major Lisbon earthquake of 1755 in order to understand the governance structure that was set to rebuild the city of Lisbon, as well as to elaborate on Max Weber’s theory of authority.
Design/methodology/approach
The present study aims to extend our knowledge on the role of leadership in organizational transformation, by examining the authority structure of governance in the aftermath of a major catastrophic event, using the study of an extreme case to generate new management theory.
Findings
The study founded evidence that the successful rebuilding of Lisbon after the earthquake was accompanied by a certain kind of governance structure that included an authority structure that simultaneously incorporated Weber’s authority types of charisma, tradition and rationality; and there was a clear distinction between the roles of each kind of authority, as well as the inviolable respect and sacredness of each other’s terrain that seems to lead to that effectiveness.
Research limitations/implications
It is possible that the historical conditions in which this social transformation took place might not be repeatable in today’s context, but the analysis of such an extreme case of destruction and rebuilding evidences that the “atomistic” approach of Max Weber on authority can be enriched with a “molecular” approach that, at the same time, helps to further develop the concept of “shared leadership” by analyzing it from a Weberian point of view.
Practical implications
Today’s organizations should analyze their governance structure and management staff from a “molecular” Weberian perspective, if they want to achieve major transformations.
Originality/value
The study further develops Max Weber’s theory of authority and discusses it regarding a “shared leadership” perspective.
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Maria Teresa Gomes Leão and Filipa Aguiar Brandão
This study aims to illustrate the potential of the many centuries-old universities buildings, in European cities, in a historical, architectural, aesthetic and symbolic dimension…
Abstract
Purpose
This study aims to illustrate the potential of the many centuries-old universities buildings, in European cities, in a historical, architectural, aesthetic and symbolic dimension to diversify and differentiate urban tourist destinations supply.
Design/methodology/approach
This is a qualitative study supported by the analysis of public and classified documents, for which the main source is based on webography, and by conducting interviews.
Findings
The deficit of cultural tours, in the dimension of built heritage, is identified as one of the weaknesses of the city of Porto, as tourist destination, to be overcome. The interviewees are unanimous in recognizing the cultural, architectural and aesthetic impact of the historic buildings of the University of Porto, and most of them strongly agree with the integration of this legacy into the tourist offer of the city. The strategic sense of the heritage is emphasized, because of its location in charismatic areas of the city. The practice of effective networking, however, falls short of what is required to achieve ambitious and consistent objectives.
Research limitations/implications
The practice of effective networking, however, falls short of what is required to achieve ambitious and consistent objectives.
Originality/value
Emphasis is placed on the cities’ built heritage as a type of heritage that defines their uniqueness. The dissemination of cultural itineraries, which allows tourists and the community itself a broader and deeper cultural knowledge, contributes to the effective understanding of historic cities’ tourism. Given the scarcity of studies on the relationship between historic university buildings and tourism, the relevance of research focuses on highlighting the contribution of these cultural elements, through a network-based dynamic, to urban tourism destinations’ attractiveness. In particular, the University of Porto's potential for the integration of structured tourism products that contribute to the diversification and differentiation of the city of Porto as a destination is illustrated.