REIT Capital Structure Choices: Preparation Matters
dc.contributor.author | Pavlov, Andrey | |
dc.contributor.author | Steiner, Eva | |
dc.contributor.author | Wachter, Susan | |
dc.date.accessioned | 2020-09-12T21:03:40Z | |
dc.date.available | 2020-09-12T21:03:40Z | |
dc.date.issued | 2016-02-29 | |
dc.description.abstract | Sun, Titman, and Twite (2015) find that capital structure risks, namely high leverage and a high share of short-term debt, reduced the cumulative total return of US REITs in the 2007-2009 financial crisis. We find that mitigating capital structure risks ahead of the crisis by reducing leverage and extending debt maturity in 2006, was associated with a significantly higher cumulative total return 2007-2009, after controlling for the levels of those variables at the start of the financial crisis. We further identify two systematic cross-sectional differences between those REITs that reduced capital structure risks prior to the financial crisis and those that did not: the exposure to capital structure risks and the strength of corporate governance. On balance, our findings are consistent with the interpretation of risk-reducing adjustments to capital structure ahead of the crisis as a component of managerial skill and discipline with significant implications for firm value during the crisis. | |
dc.description.legacydownloads | Steiner2_REIT_capital_structure.pdf: 285 downloads, before Aug. 1, 2020. | |
dc.identifier.other | 9251511 | |
dc.identifier.uri | https://hdl.handle.net/1813/71610 | |
dc.language.iso | en_US | |
dc.rights | Required Publisher Statement: © Wiley. This is the pre-peer reviewed version of the following article: Pavlov, A., Steiner, E. & Wachter, S. (2016). REIT capital structure choices: Preparation matters. Real Estate Economics. doi: 10.1111/1540-6229.12155. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. | |
dc.subject | real estate investment | |
dc.subject | leverage | |
dc.subject | financial crisis | |
dc.title | REIT Capital Structure Choices: Preparation Matters | |
dc.type | article | |
local.authorAffiliation | Pavlov, Andrey: Simon Fraser University | |
local.authorAffiliation | Steiner, Eva: ems457@cornell.edu Cornell University School of Hotel Administration | |
local.authorAffiliation | Wachter, Susan: University of Pennsylvania |
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