Corporate portfolio management within Japanese diversified trading & investment companies : what role does real estate play?
Name
825116667-MIT.pdf
Description
Full printable version
Size
7.32 MB
Format
Adobe PDF
Checksum (MD5)
1ab413f2f266bd9b74f081b4ca0f0e49
Author(s)
Ono, Takanori
Advisor(s)
David Geltner.
Date Issued
2012
Publisher
Massachusetts Institute of Technology
Abstract
This paper discusses possible optimal corporate portfolio composition for Japanese trading and investment firms from stakeholders' (specifically shareholders and employees) value maximization perspective. Based on the historical returns of diversified business units of 4 subject companies, performances of individual business units and three portfolios (current, tangency, and "suboptimal") are analyzed and compared. The study suggests adjusting suboptimal portfolio composition based on each business unit's systematic risk and excess market return relative to its systematic risk and industry average. A firm also needs consideration on how the composition adjustment would affect diversification benefits the firm now enjoys and also on its overall management strategy. Key words: corporate portfolio management, diversification, stakeholder theory, portfolio theory, CAPM, Index model, accounting beta, Jensen's Alpha, Treynor ratio, multi-factor model.
Description
Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012.
Cataloged from department-submitted PDF version of thesis. This electronic version was submitted and approved by the author's academic department as part of an electronic thesis pilot project. The certified thesis is available in the Institute Archives and Special Collections.
Includes bibliographical references (p. 81-83).
Subjects
Center for Real Estate. Program in Real Estate Development.
MIT Department
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.
Massachusetts Institute of Technology. Center for Real Estate
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