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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.



Item Type: MPRA Paper -

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

Language: English-

Keywords: mega-events; Olympic Games; Real Estate Investment Trust; event study-

Subjects: G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider TradingL - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; TourismR - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R30 - GeneralR - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R53 - Public Facility Location Analysis ; Public Investment and Capital Stock-





Author: Ogawa, Ryoh

Source: https://mpra.ub.uni-muenchen.de/78829/



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