Jeongseop Song 

Jeongseop Song is an assistant professor at the School of Real Estate at Konkuk University, Seoul, Republic of Korea. His research fields can be represented as follows: 

Real Estate Finance: Asset pricing features of public and private real estate; International real estate portfolio diversification; Risk management

Geography of Economics and Finance: Regional economic activity; Investment of local firms; Economic implication of local housing market

Climate Risk in the real estate market: Asset price anomalies from climate risk exposure; Varying economic decisions made in response to natural disaster. 

He obtained a bachelor's degree in real estate from Konkuk University and a Ph.D. degree from the Business School at the National University of Singapore. Before joining Konkuk University, he worked as an assistant professor at the University of Aberdeen Business School. He has taught undergraduate-level Land and Property Economics and Understanding Statistics, and graduate-level Real Estate Finance courses at the University of Aberdeen. He also has teaching experience in Real Estate Finance and Accounting and Principles of Real Estate Economics as a tutor at the National University of Singapore. 

제시된 연구분야에 관심이 있는 학생은 아래 메일로 연락 주기 바랍니다. 

email: jssong23@konkuk.ac.kr 

Google Scholar

Research Highlights 

1. Climate Risk and Real Estate Market 

In recent years, natural disasters resulting from climate change have caused significant physical and economic repercussions across diverse sectors. These consequences encompass various outcomes such as ecosystem disturbances, alterations in weather patterns, sea level rise, and shifts in agricultural productivity. In my research, I intend to investigate the possible consequences and implications of climate change on both private and public real estate markets.

In my recently drafted paper titled "Natural Disaster and Asset Price: Evidence from the Public Commercial Real Estate Market" (co-authored with Jamie Chung), we investigate the correlation between natural disaster risk, investor behavior, and asset pricing. Utilizing granula property-level data on U.S. commercial real estate properties held by Real Estate Investment Trusts (REITs), this study introduces a novel measure of natural disaster risk, named "natural disaster beta". We find that future stock returns are significantly and positively priced by natural disaster beta. Importantly, geographically distant investors are one of important drivers on this relationship. Our research reveals the salience effect, indicating that the premium linked to natural disaster beta is more significant for firms in regions with lower historical natural disaster exposure. Finally, we show the impact of the political regime on the strength of the natural disaster premium.

2. Geography of Economics and Finance 

In my research pipeline, I delve into the implications of location theory in the realms of economics and finance by integrating this knowledge with corporate finance, real estate, and investment studies. The geography of finance examines the influence of geographical factors on economic decisions and outcomes for firms, individuals, or regions. This area of study has garnered heightened interest in recent years due to the deepening economic connections between regions, fueled by globalization, financial deregulation, and technological advancements. 

In my paper "Regional Economic Uncertainty and Corporate Investment" (with Fan Zhang), we examine the effect of regional market uncertainty on corporate investment. We use textual analysis ofannual financial reports (10-K filings) to construct firm-level exposure to uncertainty from individual states and find that firms significantly reduce investments when their economically relevant regions face higher uncertainty. The negative impacts come from both headquartered states and other relevant states. Notably, we find the effects of regional uncertainty to be stronger for firms with higher investment irreversibility at the regional level as well as firm level. We further demonstrate that the degree of investment reduction under regional uncertainty is greater for financially constrained firms. Overall, the findings of this study suggest that uncertainty in regions of firms’ economic interest is an important component of preventive delays in investment decisions.

3. Empirical Asset Pricing and Portfolio Investment in the Real Estate Market

Another pipeline of my research investigates the empirical asset pricing factors in the public real estate market as well as the traditional asset market. Within this domain, my objective is to pinpoint distinctive factors that could underlie market anomalies, potentially stemming from the imperfect market conditions inherent in the real estate market. By analyzing these factors, I aim to shed light on the intricacies of asset pricing in both real estate and broader financial markets, contributing valuable insights to the understanding of market dynamics and investment strategies. In addition, I explore the potential diversification possibilities from various asset markets throughout not only inter-market but also intra-market context. 

In "Industrial tail exposure risk and asset price: evidence from US REITs" (with Kim Hiang Liow), we investigate the impact of industry‐based tail dependence risk on the cross‐section of stock returns. To this end, we propose a novel tail risk dependence measure (industrial tail exposure risk [ITER]), which captures the tail risk exposure of individual stocks to multiple industries. Using US equity real estate investment trusts (REITs) data from 1993 to 2020, we document that stocks in the highest ITER portfolio outperform stocks in the lowest ITER portfolio by 8.40% per annum. This positive return spread is significant even after controlling for well‐known firm characteristics. The return premium of ITER is stronger for small, value, and highly levered stocks and is substantially high during recession periods. Finally, the effects of ITER are cross‐sectionally more associated with REITs that have greater degrees of the following factors: bivariate tail exposure risks of major industries, exposure to local industry tail risk, geographical concentration, and ownership of home-biased investors. Overall, our results suggest that REIT investors are indeed averse to tail risks that are associated with various sectors. 

Publication 

"Regional Stock Market Risk and Corporate Investment", North American Journal of Economics and Finance (SSCI), 2024, 69:102013 (with Fan Zhang) 

"Does Local Economic Uncertainty Matter for Risk of Property Companies? Evidence from US REITs ”, International Journal of Strategic Property Management (SSCI), 2023, 27(2), 105-119

"Industrial Tail Exposure Risk and Asset Price: Evidence from US REITs”, Real Estate Economics (SSCI), 2023, 51(5), 1209-1245 (with Kim Hiang Liow)

"Investment dynamics of Singapore stock and real estate markets”, The Singapore Economic Review (SSCI), forthcoming (with Kim Hiang Liow and Justin Lau)

"Interdependence dynamics of corporate equity and public real estate markets”, Journal of European Real Estate Research (SCOPUS), 2022, 15(2) 147-178 (with Kim Hiang Liow)

"Frequency volatility connectedness and market integration in international real estate investment trusts”, Finance Research Letters (SSCI), 2022, 45, 102174 (with Kim Hiang Liow)

"Volatility connectivity and market dependence across major financial markets in China economy”, Quantitative Finance and Economics, 2021, 5(3), 397-420 (with Kim Hiang Liow, Xiaoxia Zhou)

"Dynamic interdependence of ASEAN5 with G5 stock markets”, Emerging Markets Review (SSCI), 2020, 45, 100740 (with Kim Hiang Liow)

"Market Integration among the US and Asian Real Estate Investment Trusts in Crisis Times”, International Real Estate Review (SCOPUS), 2019, 22(4), 463- 512 (with Kim Hiang Liow)

"Who Influences the Asian–Pacific Real Estate Markets: The US, Japan or China?”, China & World Economy (SSCI), 2019, 27(6), 50-78 (with Kim Hiang Liow, Yuting Huang)

"Relationship between the United  States Housing and Stock Markets: Some evidence from wavelet analysis”, The North American Journal of Economics and Finance (SSCI), 2019, 50: 101033 (with Kim Hiang Liow, Yuting Huang)

Working Papers 

"Who Responds to Climate Risk? Evidence from Real Estate Investors" Under Review  (with Jamie Chung)

"Tail Risk Spillovers and Comovements: Evidence from U.S. REIT market", Under Revision 

"Tail Risk Diversification in REITs market: Flight from Target" Under Revision

"Geography of Corporate Linkage and Housing Price Spillover" Under Revision

"Do people fear climate risk? Evidence from investors’ reaction to Hurricane in Urban Areas" Under Revision

Work in Progress

“Regional housing price growth and corporate investment: Areas of non-headquarters matter” 

“Bank branch network and housing price spillover” 

“Empirical Asset pricing using machine learning: Interpretation matters” (with Yougseok Jeon) 

"Global Economic Policy Uncertainty and Corporate Investment" (with Seungho Lee)

Teaching Experience

Konkuk University, School of Real Estate

         Corporate Finance (Undergraduate & Graduate levels) 

         Real Estate Economic Principles (Undergraduate & Graduate levels)

University of Aberdeen, Business School

         Land and Property Economics (Undergraduate level) 

         Real Estate Finance (Graduate level) 

         Understanding Statistics (Undergraduate level) 

National University of Singapore, Department of Real Estate

         Real Estate Finance and Accounting (Undergraduate level) 

         Principle of Real Estate Economics  (Undergraduate level) 

Referee Service 

Applied Economics, Asia-Pacific Journal of Accounting and Finance, Finance Research Letters, Financial Innovation, Journal of Housing and Built Environment, International Journal of Managerial Finance, International Journal of Urban Science, International Real Estate Review, Journal of Property Research, Journal of Real Estate Portfolio Management, Korea Real Estate Analyst Association