Commercial Property Exposure and Corporation Financing Choice

IF 0.5 Q4 BUSINESS

International Journal of Business Pub Date : 2022-04-30 DOI:10.55802/ijb.027(2).006

Jing Yang

引用次数: 0

Abstract

This study explores the possible relationship between a corporation’s capital structure and its commercial property exposure as well as property market characteristics. Using data from the heavily levered and rapidly growing U.S. telecommunications industry, we find a positive association between leverage and commercial property exposure via commercial property ownership since the 1996 telecommunications industry deregulation, after controlling for traditional capital structure determinants, and the association is particularly prominent during the 2007-2009 Great Recession. A possible justification is the collateral effect of real estate properties on leverage. The exposure through property leases also play (albeit smaller) roles in the financing choice. Our findings generally suggest a non-trivial influence of real estate exposure to the firms’ financing choices, especially when the capital market is tight hence the collateral effect is critical.

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商业地产风险敞口与企业融资选择

本研究探讨了企业资本结构与其商业地产敞口以及房地产市场特征之间的可能关系。利用来自杠杆率高且快速增长的美国电信业的数据，我们发现，自1996年电信业放松管制以来，在控制了传统资本结构决定因素后，杠杆率与通过商业地产所有权获得的商业地产敞口之间存在正相关，这种关联在2007-2009年大衰退期间尤为突出。一个可能的理由是房地产对杠杆的附带影响。房地产租赁的风险敞口在融资选择中也发挥着（尽管较小）作用。我们的研究结果通常表明，房地产风险敞口对公司的融资选择有着不小的影响，尤其是在资本市场紧张的情况下，因此抵押品效应至关重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Business BUSINESS-

CiteScore

0.70

自引率

0.00%

发文量

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