Corporate real estate management and bank profitability

Main Article Content

Article Sidebar

Published Sep 17, 2021
Kenneth Donkor-Hyiaman Esther Narhkwor Terkper Eric Paul Tudzi De-Graft Owusu-Manu Benjamin Ajabuin

Abstract

Acquiring property for any business is capital intensive and for that matter, strategically managing such assets is considered equally important. This paper provides an analysis of the value-adding attributes of corporate real estate management (CREM) and bank performance in Ghana. The multiple regression method was applied to a cross-section of both primary and secondary data sourced from 25 commercial banks in Ghana. The study shows that the banks identify with the value-adding attributes of corporate real estate asset management even though there are variations in the level of importance to individual banks. These variations are attributable to the unique mandates of the banks. Further analysis shows that CREM has significantly positive impacts on bank profitability by strategies that help to increase innovations, increase productivity, and promote marketing and sales. The finding suggests that optimizing these CREM strategies could help increase bank profits.

How to Cite

Donkor-Hyiaman, K., Terkper, E. N., Tudzi, E. P., Owusu-Manu, D.-G., & Ajabuin, B. (2021). Corporate real estate management and bank profitability. Journal of Research in Emerging Markets, 3(4), 35–47. https://doi.org/10.30585/jrems.v3i4.651
Abstract 282 | PDF Downloads 184

Article Details

Keywords

Corporate Real Estate, Corporate Real Estate Management, Corporate Real Estate Strategies, Bank Performance, Value Addition, Ghana

Section
Articles

References

Adusei, M. (2011). Board structure and bank performance in Ghana. Journal of Money, Investment and Banking, 19(1), 72-84.

Gadzekpo, D. A. A., & Agyeman, N. A. B. Real estate management and value adding in corporate institutions in Ghana. European Journal of Business and Management, 7(17), 36-54.

Appel‐Meulenbroek, R., Havermans, D., Janssen, I., & van Kempen, A. (2010). Corporate branding: an exploration of the influence of CRE. Journal of Corporate Real Estate, 12(1), 47-59

Bikker, J. A. (2010). Measuring performance of banks: an assessment. Journal of Applied Business and Economics, 11(4), 141-159.

Boakye-Agyeman, N. A., & Bugri, J. T. (2019). Strategic corporate real estate management practice in Ghana. Property Management, 37(3), 432-447.

Bos, J. W. (2004). Does market power affect performance in the Dutch banking market? A comparison of reduced form market structure models. De Economist, 152(4), 491-512.

de Vries, J. C., De Jonge, H., & Van Der Voordt, T. J. (2008). Impact of real estate interventions on organisational performance. Journal of Corporate Real Estate, 10(3), 208 – 223.

Gale, J., & Case, F. (1989). A study of corporate real estate resource management. Journal of Real Estate Research, 4(3), 23-34.

Hartmann, S., Linneman, P. D., Pfnür, A., & Siperstein, B. (2009). Realizing the value of corporate real estate management. Wharton Real Estate Review, 13(1), 21.

Haynes, B. P. (2012). Corporate real estate asset management: aligned vision. Journal of Corporate Real Estate, 14(4), 244-254.

Haynes, B., & Nunnington, N. (2010). Corporate real estate asset management: strategy and implementation. Estates Gazette.

Hicks, J. R. (1935). Annual survey of economic theory: the theory of monopoly. Econometrica: Journal of the Econometric Society, 1-20.

Ijasan, K.C. (2013). Potentials of strategic corporate real estate management: South African perspective. International Journal of Economics, Business and Finance, 1(8), 235 - 248.

Jensen, P. A., & van der Voordt, T. J. (2020). Typology of value adding FM and CREM interventions. Journal of Corporate Real Estate, 22(3), 197-211.

Jensen, P. A., van der Voordt, T., Coenen, C., von Felten, D., Lindholm, A. L., Nielsen, S. B., & Pfenninger, M. (2012). In search for the added value of FM: what we know and what we need to learn. Facilities, 30(5/6), 199-217.

Jordan, M., McCarty, T., & Velo, B. (2009). Performance measurement in corporate real estate. Journal of Corporate Real Estate, 11(2), 106-114.

Kenley, R., & Heywood, C. (2000, September). Corporate real estate management practice: contrasts between financial and service provision priorities in corporate and government organisations. In 16th Annual ARCOM Conference 6-8 September 2000. Glasgow Caledonian University.

Khrawish, H. A. (2011). Determinants of commercial banks performance: Evidence from Jordan. International Research Journal of Finance and Economics, 81(1), 148-159.

Kofi, A., & Aeron, K. (2010). The Determinants of Bank’s Profitability in Ghana, The Case of Merchant Bank Ghana Limited (MBG) and Ghana Commercial Bank (GCB). Unpublished MBA Thesis, Blekinge Institute of Technology.

Krumm, P. J., Dewulf, G., & De Jonge, H. (1998). Managing key resources and capabilities: pinpointing the added value of corporate real estate management. Facilities, 16 (12/13), 372 – 379.

Krumm, P. J. M. M. (1999). Corporate real estate management in multinational corporations: a comparative analysis of Dutch corporations. Nieuwegein: Arko publishers.

Langford, L., & Haynes, B. (2015). An investigation into how corporate real estate in the financial services industry

can add value through alignment and methods of performance measurement. Journal of Corporate Real

Estate, 17(1): 46-62.

Lindholm, A. L., Gibler, K., & Leväinen, K. (2006). Modeling the value-adding attributes of real estate to the wealth maximization of the firm. Journal of Real Estate Research, 28(4), 445-476.

Lindholm, A. L., & Leväinen, K. I. (2006). A framework for identifying and measuring value added by corporate real estate. Journal of Corporate Real Estate, 8(1):38‐46.

Lindholm, A. L., & Nenonen, S. (2006). A conceptual framework of CREM performance measurement tools. Journal of Corporate Real Estate, 8(3): 108-119.

Manning, C., & Roulac, S. E. (2001). Corporate real estate research thought leadership continues to evolve. Journal of Real Estate Research, 22(1/2), 1.

Matthew, N. G., & Laryea, A. E. (2012). A financial performance comparison of foreign vs local banks in Ghana. International Journal of Business and Social Science, 3(21).

McDonagh, J., & Nichols, G. (2009). Business strategy and property strategy–how strong is the linkage? Journal of Corporate Real Estate.

Miles, M., Pringle, J. & Webb, B. (1989). Modelling the corporate real estate decision. Journal of Real Estate Research, 4(3), 47‐66.

Musa, M. F. B., & a Baharum, Z. A. (2012). Corporate Real Estate (CRE): Public institution of higher learning in Malaysia. Procedia-Social and Behavioral Sciences, 36, 273-279.

Nabieu, G. A. (2013). The structure, conduct and performance of commercial banks in Ghana. European Journal of Business and Innovation Research, 1(4), 34-47.

Nkegbe, P. K., & Ustarz, Y. (2015). Banks performance in Ghana: Trends and determinants. Ghana Journal of Development Studies, 12(1-2), 33-52.

Oladokun, T. T., & Aluko, B. T. (2012). Corporate governance and real estate assets management in Nigerian banks. Journal of Corporate Real Estate, 14 (3), 182 – 195.

Omar, A. J., & Heywood, C. A. (2014). Defining a corporate real estate management's (CREM) brand. Journal of Corporate Real Estate, 16(1), 60-76.

Owusu-Antwi, G., Mensah, L., Crabbe, M., & Antwi, J. (2015). Determinants of bank performance in Ghana, the economic value added (EVA) approach. International Journal of Economics and Finance, 7(1), 204-215.

Stephen, R. (2001). Corporate property strategy is integral to corporate business strategy. Journal of Real Estate Research, 22(1-2), 129-152.

Scheffer, J. J., Singer, B. P., & Van Meerwijk, M. C. (2006). Enhancing the contribution of corporate real estate to corporate strategy. Journal of Corporate Real Estate, 8(4): 188-197.

Sulaiman, N. N., Diah, M. L. M., Ramin, A., Omar, A. J., & Ambar, A. (2015, January). Corporate real estate performance in Malaysian Public Listed companies. In Pacific-Rim Real Estate Society Conference, Kuala Lumpur, January (pp. 18-21).

van der Voordt, T. (2017). Facilities management and corporate real estate management: FM/CREM or FREM? Journal of Facilities Management, 17(3): 244-261.

van der Voordt, T. J. (2016). Adding value by health care real estate: parameters, priorities, and interventions. Journal of Corporate Real Estate, 18(2): 145-159.

Varcoe, B. (2011). The alignment of corporate real estate performance to enterprise needs Part Two: The business management view compared with CRE practice. Corporate Real Estate Journal, 1(3), 219-231.

Varcoe, B., & O’Mara, M. (2011). Corporate real estate impact on enterprise success. Regus Global Report.