Property Appraisal Agency Reputation,Environmental Uncertainty And Property Appraisal Quality

With the maturity of the capital market and the deepening of the research on the theory of reputation mechanism,the reputation of intermediaries and their research on the service quality of intermediaries(including accounting firms,investment banks,underwriters,etc.)have become hot topics in recent years.However,few scholars have studied the reputation of property appraisers.As one of the participants in the capital market,property appraisal agencies play an increasingly important role in mergers and acquisitions activities.The evaluation value of the property is an important reference for the final transaction price,which directly affects the determination of the final transaction price by both parties.Therefore,the quality of property appraisal is the core of property appraisal and the basis for property appraisal agencies to survive.The literature has provided extensive evidence for the factors affecting the quality of property appraisal.Scholars mainly use the internal and external factors of property appraisal agency as the entry point to study the factors affecting the quality of property appraisal,including property appraisal management system,appraisal environment,the size of the property appraisal agency and the professional competence of the property appraisers.Whether the reputation mechanism can play a role in the property appraisal agency,and thus affect the quality of property appraisal,few scholars have conducted research on this.On the other hand,high environmental uncertainty will reduce the company's earnings quality and increase the company's operational risk,which will make the property appraisers reduce the quality and quantity of effective evaluation information from the existing environment,which increases the difficulty and the risk of property appraisal.At this time,whether the high-reliability property appraisal agency can still effectively improve the quality of property appraisal.In this theoretical context,this paper intends to explore the impact of the reputation of property appraisal agency on the quality of property appraisal based on reputation theory,resource-based theory and public stress theory,and discuss the impact of environmental uncertainty.In order to explore the impact of the reputation of property appraisal agencies on the quality of property appraisal and the impact of different environmental uncertainties,we selected the M&A and reorganization activities of listed companies in Shanghai and Shenzhen stock markets from 2012 to 2014 as raw data.According to the ranking of the top 100 property appraisal agencies in 2011-2013 published by China Property Appraisal Association,the property appraisal agencies will set three sets of dummy variables respectively.Using the method of empirical research,on the basis of the control variables,the impact of the reputation of property appraisal agencies on the quality of property appraisal is studied.At the same time,the sample data is divided into two groups according to the degree of environmental uncertainty for comparative analysis and regression analysis of interactive items.In order to further study whether there is a difference in the impact of the reputation of property appraisal agencies on the quality of property appraisal under different environmental uncertainties.The study found that: First,the reputation of property appraisal agency is positively related to the quality of property valuation.Property appraisal agency is more motivated to maintain their good reputation because of their long-term interests,including market share and competitive advantage.Therefore,they will maintain a high degree of independence during the evaluation process and will be more cautious in their appraisal.When the property appraisal agency has a high reputation,it can attract more professional talents,thereby improving the professional competence of the property appraisal agency;in addition,the high-prestige property appraisal agency can exert a strong advantage to cope with high society.Focus on the resulting pressures to improve service levels and quality of assessments to maintain existing social status.Second,the greater the environmental uncertainty,positive impact on the reputation of the property appraisal agency to assess the quality of property is more pronounced.Higher environmental uncertainties increase the appraisal risk and appraisal difficulty of property appraisers.In this case,the high-prestige property appraisal agency will be more cautious in the evaluation process due to its own reputation,so as to reduce the adverse effects of the appraisal risk.At the same time,the high-prestige property appraisal agency has more experience and more experience.Professional technology and stronger practice ability are more conducive to the improvement of property appraisal quality.The conclusions of this paper have guiding significance for the two parties to select property appraisal agency,and also have reference for the future development of property appraisal agency.