Investor sentiment and timberland investment returns.
We use the orthogonalized investor sentiment index formed by M. Baker and J. Wurgler (J. Financ. 61(4): 1645-1680, 2006) to examine the relationship between investor sentiment and timberland investment returns. The empirical results show that current investor sentiment is an important factor that determines the one-quarter future returns of timberland investment, and the predicting power persists over the next 1 to 5 years. Both the short- and long-term studies obtain negative coefficients on investor sentiment, indicating that current increase in investor sentiment drives prices up and lowers future returns. In addition, significantly different return variances and insignificantly different average returns of timberland investment are obtained between low- and high-sentiment periods. The result further confirms the ability of earning long-tenn stable returns by timberland investment. timberland 2 eye,
As an investment vehicle, timberland assets are good candidates for portfolio diversification because of their weak correlation with the market and low systematic risk (Lonnstedt and Svensson 2000, Zinkhan and Cubbage 2003, Healey et al. 2005, Newell and Eves 2009, Waggle and Johnson 2009).timberland classic 6 premium boot, In the United States, institutional investors such as pension funds, investment banks, endowments, and foundations have diversified their investments from traditional financial assets to timberland assets for long-term stable returns since the 1980s. In 2010, the total value of timberland properties held by institutional investors was approximately $30 billion (Harris et al. 2010).
Institutional investors seek professional management of timberland properties from timberland investment management organizations (TIMOs). TIMOs are responsible for searching proper timberland investment properties and managing them to achieve adequate returns. Timberlands are illiquid assets with the length of investment horizons typically being 10 to 15 years (Clutter et al. 2005). To provide financial information about timberland investment, the National Council of Real Estate Investment Fiduciaries (NCREIF), together with several TIMOs,mens timberland, published the NCREIF Timberland Index (NTI) in 1992 (Binkley et al. 2003). Based on the quarterly and yearly NTI data dating back to 1987, the financial performance of timberland assets has been examined by several studies (Sun and Zhang 2001, Cascio and Clutter 2008, Liao et al. 2009, Mei and Clutter 2010, Rockemann and Schiereck 2010, Clements et al. 2011, Yao et al. 2014, Yao and Mei 2015). Most of these studies relied on traditional financial and time series models, which assume that only systematic risks affect asset returns. However, empirical results of significant abnormal returns indicate that those systematic risk factors have limited predicting power on timberland investment returns. Several studies found that some nonsystematic risks also have effects on timberland investment returns. Gao and Mei (2013) used the Internet search volume of timberland related terms to test investor attention on timberland asset pricing and found significant relationships between investor attention and the abnormal returns of timberland investments. Recent studies on behavioral finance argue that irrational investors in the market have an important effect on stock prices. Investor sentiment, which captures the irrationality in the naive and individual investors, mens 6 inch timberland boots,has been found to be significantly related to stock returns (Brown and Cliff 2005, Baker and Wurgler 2006, Schmeling 2009).
This study contributes to literature by studying the relationship between investor sentiment and private-equity timberland investment returns. Our goal was to examine the predicting power of investor sentiment on the short- and long-term timberland investment returns by using an indirect sentiment index. black timberland boots for men, The performances of timberland investment in low- and high-sentiment periods were studied and are compared in this article.