TY - JOUR
T1 - Explaining the variation in REIT capital structure
T2 - The role of asset liquidation value
AU - Giambona, Erasmo
AU - Harding, John P.
AU - Sirmans, C. F.
PY - 2008/3
Y1 - 2008/3
N2 - We test the Shleifer-Vishny hypothesis that asset liquidation values influence both firm leverage and the choice of debt maturity. Using panel data on real estate investment trusts, we estimate a simultaneous equation model and find that firms specializing in the most (least) liquid assets use more (less) leverage and longer (shorter) maturities. The evidence also suggests that, for REITs, debt maturity and leverage are substitutes, consistent with the theory and predictions of Barclay, Marx and Smith.
AB - We test the Shleifer-Vishny hypothesis that asset liquidation values influence both firm leverage and the choice of debt maturity. Using panel data on real estate investment trusts, we estimate a simultaneous equation model and find that firms specializing in the most (least) liquid assets use more (less) leverage and longer (shorter) maturities. The evidence also suggests that, for REITs, debt maturity and leverage are substitutes, consistent with the theory and predictions of Barclay, Marx and Smith.
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U2 - 10.1111/j.1540-6229.2008.00209.x
DO - 10.1111/j.1540-6229.2008.00209.x
M3 - Article
AN - SCOPUS:38849104322
SN - 1080-8620
VL - 36
SP - 111
EP - 137
JO - Real Estate Economics
JF - Real Estate Economics
IS - 1
ER -