Donn Dongshin Kim Publishes Paper in the Journal of Real Estate Finance and Economics

Assistant Professor of Finance and Real Estate, Donn Dongshin Kim, PhD recently authored a paper, Narrative Investment-Risk Disclosure & REIT Investment, that was published in the Journal of Real Estate Finance and Economics. Kim’s paper uniquely studies narrative investment-risk disclosure, applying computational linguistic analysis to the qualitative discussions of risk throughout 10-K filings. The research sample covers the real estate investment trust (REIT) sector, where firms rely heavily on external capital sources to fund new investments. Using granular investment data from a source that is independent of annual filings, Kim documented a positive relationship between changes to investment-risk disclosure and changes to actual investment. Such linkage previously evades the disclosure-informativeness literature, but is feasible in our study based on data advantages to the REIT sector. Changes to risk disclosure do not appear to simply increase the perception of risk among investors.

The full paper is available here.