@article{ART003278809},
author={Han, Gwang Ho},
title={Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2025},
volume={35},
number={4},
pages={55-74}
TY - JOUR
AU - Han, Gwang Ho
TI - Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk
JO - Korea Real Estate Review
PY - 2025
VL - 35
IS - 4
PB - korea real estate research institute
SP - 55
EP - 74
SN - 2092-5395
AB - This study examines the impact of corporate real estate (CRE) holdings on stock price crash risk by highlighting CRE’s dual nature as both a collateral asset and a potential source of information asymmetry and agency costs. We use a comprehensive panel of firms listed on KOSPI and KOSDAQ from 2011 to 2024 to develop measures of CRE holdings, identify optimal CRE levels, and assess deviations from these benchmarks. The baseline evidence indicates that firms with higher CRE have significantly lower crash risk, supporting the collateral channel hypothesis that tangible assets ease financing frictions and reduce managerial incentives to hide negative information. However, the impact varies across markets. In the KOSPI market, where monitoring and financial transparency are relatively robust, CRE acts as an effective risk buffer. Conversely, in the KOSDAQ market, excess CRE holdings significantly increase crash risk, indicating resource misallocation and greater agency frictions in a weaker information environment. The risk-mitigating effect of CRE is even more pronounced among firms with Environment, Social, Governance (ESG) ratings, emphasizing the importance of governance quality in influencing CRE’s economic function. Overall, the findings show that CRE’s financial and informational roles depend on market structure and governance conditions, acting as either a stabilizing force or a source of downside risk.
KW - Corporate Real Estate(CRE);Stock Price Crash Risk;Collateral Channel;Information Asymmetry;ESG(Environment;Social;Governance)
DO -
UR -
ER -
Han, Gwang Ho. (2025). Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk. Korea Real Estate Review, 35(4), 55-74.
Han, Gwang Ho. 2025, "Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk", Korea Real Estate Review, vol.35, no.4 pp.55-74.
Han, Gwang Ho "Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk" Korea Real Estate Review 35.4 pp.55-74 (2025) : 55.
Han, Gwang Ho. Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk. 2025; 35(4), 55-74.
Han, Gwang Ho. "Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk" Korea Real Estate Review 35, no.4 (2025) : 55-74.
Han, Gwang Ho. Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk. Korea Real Estate Review, 35(4), 55-74.
Han, Gwang Ho. Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk. Korea Real Estate Review. 2025; 35(4) 55-74.
Han, Gwang Ho. Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk. 2025; 35(4), 55-74.
Han, Gwang Ho. "Corporate Real Estate Holdings, Information Environment, and Stock Price Crash Risk" Korea Real Estate Review 35, no.4 (2025) : 55-74.
