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

PDF - Accepted Version Restricted to Repository staff only Download (292kB) | Request a copy

Abstract

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
URI:	https://repository.usp.ac.fj/id/eprint/13460

Actions (login required)

View Item