Director and Manager in investment management. He started his career working for the Blackstone Group. He is currently in charge of the financial management of private equity real estate investments of an international group in Luxembourg.
He defended in September 2022 his Executive Doctorate in Business Administration (EDBA), on the Theme« The determinants of the investment on the property market: The example of the United Kingdom» under the supervision of Professor Jean-François Gajewski, Full Professor in Management Science (Finance), Head of the research laboratory Magellan – iaelyon.
Thesis Direction
Pr Jean-François Gajewski
Thesis Title
The determinants of real estate investment: The example of the United Kingdom
Abstract
Following the worst financial crisis since the Great Depression, real estate property investment has gained increased attention from both private and institutional economic actors. Rising real estate property prices, increasing household debt, and the low borrowing interest rate constitutes factors that threaten Europe with the risk of another real estate crisis;
The study is conducted in the form of a survey administered to 150 full-time employed respondents from the UK. The dependent variables of this study are the measured motivation and rationales for investing in a property. The explanatory variables are operationalized using two main categories; normative behavior and the decision-making’s psychological dimensions. Investor profiles such as demographics are conceptualized as the control variables in the model.
Ordered logistic regression allows us to see in a sample the relationship between rationales for investing, rationales of investing for financial return, investing for a capital gain, investing for hedging against inflation, normative behavior, and psychological dimensions that are referred to as behavioral biases in the literature
Our results reveal significant associations between social herding and each rationale for investing, namely, investing for financial return, investing for capital gain, and investing for hedging against inflation.
The results also show an association between the risk metric Loan-to-value measurement’s normative behavior with the rationales of investing for financial return, investing for a capital gain, and investing for hedging against inflation. Therefore, the results suggest that the investors use the normative behavior that is the adherence to a risk metric measurement when investing for these three conceptualized rationales while at the same time exhibiting social herding.
Based on the study findings, the research proposes a “NDP” bounded rationality conceptual framework, where Normative dimension (N), psychological dimension (P) and investors demographic traits (D) are components and drivers of rational for investing and ultimately the motivation and individual intention to investing a property.
This research gives credence to the concept of bounded rationality, which posits that the investors do not come out to be irrational but rather cognitively bounded and would rather work with ordinary heuristic frameworks rather than a comprehensive ordinary equilibrium model.