USP Electronic Research Repository

An Empirical Study on Client-induced Valuation Bias - Evidence from Fiji

Batikawai, Eroni and Nawaqalevu, Asenaca (2021) An Empirical Study on Client-induced Valuation Bias - Evidence from Fiji. Journal of Pacific Studies, 41 (1). pp. 87-107. ISSN 1011-3029

[img] PDF - Accepted Version
Restricted to Repository staff only

Download (292kB)


Valuation bias stemming from the influence exerted by valuation clienteles continues to be a subject of concern affecting the objectivity, validity and utility of valuations globally. Client-induced valuation bias is of particular concern for small island developing economies like Fiji, where the adoption and implementation of global valuation practice standards is still in its infancy. This study employs a survey questionnaire and a behavioural experiment to examine the existence and nature of client influence on valuations in Fiji. The study finds that most valuers are knowledgeable of the existence of client-induced bias in their professional line of work. Furthermore, the valuers express strong opinions that clients do engage in ‘opinion shopping’ by requesting indicative figures prior to commissioning a valuer, and that clients also use information as leverage to influence valuation outcomes. Lastly, the result of the logistic regression model analysing the behavioural experiment responses suggests that neither client size nor magnitude of value adjustment sought by the client are statistically significant in explaining the valuer’s decision on whether or not to revise their valuations.

Item Type: Journal Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: School of Business and Management (SBM)
Depositing User: Fulori Nainoca - Waqairagata
Date Deposited: 09 Jun 2022 02:30
Last Modified: 09 Jun 2022 02:30

Actions (login required)

View Item View Item

Document Downloads

More statistics for this item...