Professor Charles Ward

'Professor Charles Ward

Professor Charles Ward

  • Emeritus Professor of Property Investment and Finance
  • Programme Director: MSc Finance and Real Estate

Contact details

Profile & Expertise

Charles Ward has held university posts in Lancaster, Stirling and Reading and has an economics degree from Cambridge, an MA in Finance from Exeter and a PhD from Reading.  Before moving to the ICMA Centre, he was Professor of Property Investment and Finance in the School of Real Estate and Planning.  His previous post was Professor of Accounting and Finance at Stirling University.

He has a long standing association with professional education in Investment, having been the first Chief Examiner of the Society of Investment Analysts – which later become CFA UK.  On moving to Reading, he concentrated on the area of real estate and developed the application of financial models to real estate markets.  Amongst his innovative research was the earliest published application of option pricing theory to real estate (1982), the de-smoothing of property investment returns and inflation (1988).  More recent work has been exploring the financial behaviour of property markets, the relationship between property markets and property securities and the pricing of real estate lease contracts.

His research spans a wide range of investment, finance, accounting and real estate and has been published in many journals including the Journal of Financial and Quantitative Analysis, Journal of Business Finance and Accounting, Oxford Bulletin of Economics and Statistics, Journal of Industrial Economics, Journal of Banking and Finance, Journal of Portfolio Management and Real Estate Economics.

Key publications, books, research & papers

Article

Institutional investor monitoring motivation and the marginal value of cash

Zeng, Y. , Yin, C. and Ward, C. (2017) Institutional investor monitoring motivation and the marginal value of cash. Journal of Corporate Finance. ISSN 0929-1199 (In Press)

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This paper examines whether the motivation of institutional investors in monitoring a firm is positively related to the relative importance of the firm’s stock in their portfolios. We find that greater motivated monitoring institutional ownership is associated with a higher marginal value of corporate cash holdings, which cannot be explained by other corporate governance measures and institution types. Further, we find that the economic effect of institutional monitoring on the marginal value of cash falls with decreasing institutions’ monitoring motivation. Based on these findings, we construct a monitoring motivation-weighted institutional ownership measure and document a positive relation between it and the marginal value of cash. Our results are robust after controlling for the endogeneity of institutional ownership, three cash regimes, firm size, and changes in US public firms over time.

Dr Yeqin Zeng

Dr Yeqin Zeng

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Speculative bubble spillovers across regional housing markets

Nneji, O. , Brooks, C. and Ward, C. (2015) Speculative bubble spillovers across regional housing markets. Land Economics, 91 (3). pp. 516-535. ISSN 1543-8325 doi: https://doi.org/10.3368/le.91.3.516

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In this paper we determine whether speculative bubbles in one region in the United States can lead bubbles to form in others. We first apply a regime-switching model to determine whether speculative bubbles existed in the U.S. regional residential real estate markets. Our findings suggest that the housing markets in five of the nine census divisions investigated were characterized by speculative bubbles. We then examine the extent to which bubbles spill over between neighboring and more distant regions, finding that the transmission of speculative bubbles and nonfundamentals between regions is multidirectional and does not depend on contiguity or distance

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

The performance effects of composition changes on sector specific stock indices: The case of European listed real estate

Brooks, C. , Kappou, K. , Stevenson, S. and Ward, C. (2013) The performance effects of composition changes on sector specific stock indices: The case of European listed real estate. International Review of Financial Analysis, 29. pp. 132-142. ISSN 1057-5219 doi: https://doi.org/10.1016/j.irfa.2013.04.002

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This paper examines the impact of changes in the composition of real estate stock indices, considering companies both joining and leaving the indices. Stocks that are newly included not only see a short-term increase in their share price, but trading volumes increase in a permanent fashion following the event. This highlights the importance of indices in not only a benchmarking context but also in enhancing investor awareness and aiding liquidity. By contrast, as anticipated, the share prices of firms removed from indices fall around the time of the index change. The fact that the changes in share prices, either upwards for index inclusions or downwards for deletions, are generally not reversed, would indicate that the movements are not purely due to price pressure, but rather are more consistent with the information content hypothesis. There is no evidence, however, that index changes significantly affect the volatility of price changes or their operating performances as measured by their earnings per share.

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Dr Konstantina Kappou

Dr Konstantina Kappou

Programme Director, MSc Financial Risk Management, Senior Tutor, Undergraduate and Postgraduate Programme, Regional Director, UK, London Chapter, Global Association of Risk Professionals (GARP)

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Intrinsic and rational speculative bubbles in the U.S. housing market 1960-2011

Nneji, O. , Brooks, C. and Ward, C. (2013) Intrinsic and rational speculative bubbles in the U.S. housing market 1960-2011. Journal of Real Estate Research, 35 (2). pp. 121-151. ISSN 0896-5803

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This paper examines the dynamics of the residential property market in the United States between 1960 and 2011. Given the cyclically and apparent overvaluation of the market over this period, we determine whether deviations of real estate prices from their fundamentals were caused by the existence of two genres of bubbles: intrinsic bubbles and rational speculative bubbles. We find evidence of an intrinsic bubble in the market pre-2000, implying that overreaction to changes in rents contributed to the overvaluation of real estate prices. However, using a regime-switching model, we find evidence of periodically collapsing rational bubbles in the post-2000 market

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

House price dynamics and their reaction to macroeconomic changes

Nneji, O. , Brooks, C. and Ward, C. W.R. (2013) House price dynamics and their reaction to macroeconomic changes. Economic Modelling, 32. pp. 172-178. ISSN 0264-9993 doi: https://doi.org/10.1016/j.econmod.2013.02.007

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This article applies a three-regime Markov switching model to investigate the impact of the macroeconomy on the dynamics of the residential real estate market in the US. Focusing on the period between 1960 and 2011, the methodology implemented allows for a clearer understanding of the drivers of the real estate market in “boom”, “steady-state” and “crash” regimes. Our results show that the sensitivity of the real estate market to economic changes is regime-dependent. The paper then proceeds to examine whether policymakers are able to influence a regime switch away from the crash regime. We find that a decrease in interest rate spreads could be an effective catalyst to precipitate such a change of state.

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Commercial real estate and equity market bubbles: are they contagious to REITs?

Nneji, O. , Brooks, C. and Ward, C. (2013) Commercial real estate and equity market bubbles: are they contagious to REITs? Urban Studies, 50 (12). pp. 2496-2516. ISSN 1360-063X doi: https://doi.org/10.1177/0042098013477700

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This paper uses a regime-switching approach to determine whether prices in the US stock, direct real estate and indirect real estate markets are driven by the presence of speculative bubbles. The results show significant evidence of the existence of periodically partially collapsing speculative bubbles in all three markets. A multivariate bubble model is then developed and implemented to evaluate whether the stock and real estate bubbles spill over into REITs. The underlying stock market bubble is found to be a stronger influence on the securitised real estate market bubble than that of the property market. Furthermore, the findings suggest a transmission of speculative bubbles from the direct real estate to the stock market, although this link is not present for the returns themselves.

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

The S&P500 index effect reconsidered: evidence from overnight and intraday stock price performance and volume

Kappou, K. , Brooks, C. and Ward, C. (2010) The S&P500 index effect reconsidered: evidence from overnight and intraday stock price performance and volume. Journal of Banking & Finance, 34 (1). pp. 116-126. ISSN 0378-4266 doi: https://doi.org/10.1016/j.jbankfin.2009.07.008

Dr Konstantina Kappou

Dr Konstantina Kappou

Programme Director, MSc Financial Risk Management, Senior Tutor, Undergraduate and Postgraduate Programme, Regional Director, UK, London Chapter, Global Association of Risk Professionals (GARP)

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Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

A re-examination of the index effect: gambling on additions to and deletions from the S&P 500's ‘gold seal’

Kappou, K. , Brooks, C. and Ward, C. (2008) A re-examination of the index effect: gambling on additions to and deletions from the S&P 500's ‘gold seal’. Research in International Business and Finance, 22 (3). pp. 325-350. ISSN 0275-5319 doi: https://doi.org/10.1016/j.ribaf.2007.12.001

Dr Konstantina Kappou

Dr Konstantina Kappou

Programme Director, MSc Financial Risk Management, Senior Tutor, Undergraduate and Postgraduate Programme, Regional Director, UK, London Chapter, Global Association of Risk Professionals (GARP)

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Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Back from beyond the bid-ask spread: estimating liquidity in international markets

Marcato, G. and Ward, C. (2007) Back from beyond the bid-ask spread: estimating liquidity in international markets. Real Estate Economics, 35 (4). pp. 597-620. ISSN 1080-8620 doi: https://doi.org/10.1111/j.1540-6229.2007.00202.x

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Report

Investment performance and lease structure change in the UK: research finding

Turner, N., Cullen, I., Marsh, J., Ward, C. and McAllister, P. , (2005) Investment performance and lease structure change in the UK: research finding. Report. Investment Property Forum, London. pp78.

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Real estate rental payments: application of stock-inventory modeling

McCann, P. and Ward, C. (2004) Real estate rental payments: application of stock-inventory modeling. Journal of Real Estate Finance and Economics, 28 (2/3). pp. 273-292. ISSN 1573-045X doi: https://doi.org/10.1023/B:REAL.0000011157.78122.6c

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Valuing and pricing retail leases with renewal and overage options

Hendershott, P.H. and Ward, C. (2003) Valuing and pricing retail leases with renewal and overage options. Journal of Real Estate Finance and Economics, 26 (2-3). pp. 223-240. ISSN 1573-045X doi: https://doi.org/10.1023/A:1022982809636

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Report

Monetary integration and real estate markets: an investigation of the impact of the introduction of a single currency on real estate performance

Lizieri, C. M. , McAllister, P. and Ward, C. , (2003) Monetary integration and real estate markets: an investigation of the impact of the introduction of a single currency on real estate performance. Working Papers in Real Estate & Planning. 12/03. Working Paper. University of Reading, Reading. pp39.

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This paper assesses the impact of the monetary integration on different types of stock returns in Europe. In order to isolate European factors, the impact of global equity integration and small cap factors are investigated. European countries are sub-divided according to the process of monetary convergence. Analysis shows that national equity indices are strongly influenced by global market movements, with a European stock factor providing additional explanatory power. The global and European factors explain small cap and real estate stocks much less well –suggesting an increased importance of ‘local’ drivers. For real estate, there are notable differences between core and non-core countries. Core European countries exhibit convergence – a convergence to a European rather than a global factor. The non-core countries do not seem to exhibit common trends or movements. For the non-core countries, monetary integration has been associated with increased dispersion of returns, lower correlation and lower explanatory power of a European factor. It is concluded that this may be explained by divergence in underlying macro-economic drivers between core and non-core countries in the post-Euro period.

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Corporate equity and commercial property market 'bubbles'

Hendershott, P.H., Hendershott, R.J. and Ward, C. (2003) Corporate equity and commercial property market 'bubbles'. Urban Studies, 40 (5-6). pp. 993-1009. ISSN 1360-063X doi: https://doi.org/10.1080/0042098032000074281

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Continental shift? An analysis of convergence trends in European real estate equities

Lizieri, C. M. , McAllister, P. and Ward, C. (2003) Continental shift? An analysis of convergence trends in European real estate equities. Journal of Real Estate Reseach, 25 (1). pp. 1-22.

Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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Article

Can profitable trading strategies be derived from investment best-sellers?

Brooks, C. , Chow, W. and Ward, C. (2001) Can profitable trading strategies be derived from investment best-sellers? Journal of Asset Management, 2 (2). pp. 162-179. ISSN 1470-8272 doi: https://doi.org/10.1057/palgrave.jam.2240042

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A glance along the finance shelves at any bookshop reveals a large number of books that seek to show readers how to ‘make a million’ or ‘beat the market’ with allegedly highly profitable equity trading strategies. This paper investigates whether useful trading strategies can be derived from popular books of investment strategy, with What Works on Wall Street by James P. O’Shaughnessy used as an example. Specifically, we test whether this strategy would have produced a similarly spectacular performance in the UK context as was demonstrated by the author for the US market. As part of our investigation, we highlight a general methodology for determining whether the observed superior performance of a trading rule could be attributed in part or in entirety to data mining. Overall, we find that the O’Shaughnessy rule performs reasonably well in the UK equity market, yielding higher returns than the FTSE All-Share Index, but lower returns than an equally weighted benchmark

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Professor Charles Ward

Professor Charles Ward

Programme Director: MSc Finance and Real Estate

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