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作者

来源

REAL ESTATE ECONOMICS,Vol.46,Issue1,P.160-209

语言

英文

关键字

ESTATE INVESTMENT TRUSTS; STOCK RETURNS; CORPORATE GOVERNANCE; CROSS-SECTION; FINANCIAL FLEXIBILITY; EQUITY PRICES; VALUE PREMIUM; AGENCY COSTS; LEVERAGE; DEBT

作者单位

[Pavlov, Andrey] Simon Fraser Univ, 500 Granville St, Vancouver, BC V6C 1W6, Canada. [Steiner, Eva] Univ Cambridge, Dept Land Econ, 19 Silver St, Cambridge CB3 9EP, England. [Wachter, Susan] Univ Penn, 430 Vance Hall,3733 Spruce St, Philadelphia, PA 19104 USA. Pavlov, A (reprint author), Simon Fraser Univ, 500 Granville St, Vancouver, BC V6C 1W6, Canada. E-Mail: apavlov@sfu.ca; es434@cam.ac.uk; wachter@wharton.upenn.edu

摘要

Sun, Titman and Twite find that capital structure risks, namely, high leverage and a high share of short-term debt, reduced the cumulative total return of U.S. 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.