Financial Flexibility and Manager-Shareholder Conflict: Evidence from REITs

Other Titles
Abstract
We show empirically that the use of unsecured debt, which contains standardized covenants that place limits on total leverage and the use of secured debt, is associated with lower and more stable leverage outcomes. We then show that firm value is sensitive to leverage levels and leverage stability, decreasing in the former and increasing in the latter. Our results suggest that unsecured debt covenants function as a managerial commitment device that preserves the firm’s debt capacity to enhance financial flexibility.
Journal / Series
Volume & Issue
Description
Sponsorship
Date Issued
2017-06-01
Publisher
Keywords
Real estate investment trusts; capital structure; financial flexibility
Location
Effective Date
Expiration Date
Sector
Employer
Union
Union Local
NAICS
Number of Workers
Committee Chair
Committee Co-Chair
Committee Member
Degree Discipline
Degree Name
Degree Level
Related Version
Final version published as: Riddiough, T., & Steiner, E. (2017). Financial flexibility and manager-shareholder conflict: Evidence from REITs. Real Estate Economics. Advanced Online Publication. doi: 10.1111/1540-6229.12226.
Related To
Related Part
Based on Related Item
Has Other Format(s)
Part of Related Item
Related To
Related Publication(s)
Link(s) to Related Publication(s)
References
Link(s) to Reference(s)
Previously Published As
Government Document
ISBN
ISMN
ISSN
Other Identifiers
Rights
Required Publisher Statement: © Wiley. Reprinted with permission. All rights reserved.
Rights URI
Types
preprint
Accessibility Feature
Accessibility Hazard
Accessibility Summary
Link(s) to Catalog Record