Topic: Information Sharing across MLS Platforms and Housing Prices: Evidence from a Temporary Suspension of an Agreement
Speaker: YANG Liuming, Assistant Professor, Business School, Chinese University of Hong Kong
Host: GAN Xu,Lecturer, Department of Finance, School of Management of HUST
Time and Date: 10:30-12:00,16 Sep. 2023
Location: SOM 409
Abstract:This study examines the impact of an information shock on the listing outcomes of digital trading platforms. It reports a unique case of the suspension of a data sharing agreement between two Multiple Listing Services (MLS) in South Florida, and investigates the impact of such a (negative) information shock on the sales outcomes of properties on the MLS platforms. The paper first develops a theoretical model involving search and matching frictions, which predicts discounted trading prices being correlated to the degree of cross-MLS brokers' collaboration. Using data involving property listings from the two MLSs, the paper then presents a series of regression analyses and depicts that there is approximately a 3% price reduction during the data suspension period. This result confirms the theoretical model's predictions, and remains stable and consistent under various robustness checks. Our results also reveal heterogeneous pricing and liquidity effects due to such an information shock.
Speaker’s Profile: YANG Liuming is currently an assistant Professor of real estate Finance at the Business School of the Chinese University of Hong Kong. He received his Ph.D. degree in Business Administration from Georgia State University in 2022, his M.S. degree in Financial Engineering from Wuhan University in 2017 and his B.S. degree in Financial eEngineering from Wuhan University in 2014. His research interests include real estate and household finance.
