Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity
We infer debt conservatism behavior by examining how REITs adjust towards their debt capacity following a capital issue or repurchase decision. It is observed that REITs with high unused debt capacity tend to issue equity which renders them more underleveraged for at least two consecutive years. The...
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| Format: | Article |
| Language: | English |
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UUM Press
2017
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| Online Access: | https://repo.uum.edu.my/id/eprint/29524/1/IJBF%2013%2001%202017%201-28.pdf |
| _version_ | 1825806003691585536 |
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| author | Wong, Woei Chyuan |
| author_facet | Wong, Woei Chyuan |
| author_sort | Wong, Woei Chyuan |
| collection | UUM |
| description | We infer debt conservatism behavior by examining how REITs adjust towards their debt capacity following a capital issue or repurchase decision. It is observed that REITs with high unused debt capacity tend to issue equity which renders them more underleveraged for at least two consecutive years. These high debt buffer REITs also tend to converge slowly towards their debt capacity through repurchase decisions and hold significantly higher unused debt facilities than their low buffer counterparts. These findings are robust to a variety of robustness checks and cannot be explained by the traditional pecking order and trade-off theories of capital structure. |
| first_indexed | 2024-07-04T06:41:40Z |
| format | Article |
| id | uum-29524 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:41:40Z |
| publishDate | 2017 |
| publisher | UUM Press |
| record_format | eprints |
| spelling | uum-295242023-06-06T08:59:13Z https://repo.uum.edu.my/id/eprint/29524/ Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity Wong, Woei Chyuan HG Finance We infer debt conservatism behavior by examining how REITs adjust towards their debt capacity following a capital issue or repurchase decision. It is observed that REITs with high unused debt capacity tend to issue equity which renders them more underleveraged for at least two consecutive years. These high debt buffer REITs also tend to converge slowly towards their debt capacity through repurchase decisions and hold significantly higher unused debt facilities than their low buffer counterparts. These findings are robust to a variety of robustness checks and cannot be explained by the traditional pecking order and trade-off theories of capital structure. UUM Press 2017 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/29524/1/IJBF%2013%2001%202017%201-28.pdf Wong, Woei Chyuan (2017) Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity. International Journal of Banking and Finance (IJBF), 13 (1). pp. 1-28. ISSN 2590-423X https://e-journal.uum.edu.my/index.php/ijbf/article/view/8496 |
| spellingShingle | HG Finance Wong, Woei Chyuan Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity |
| title | Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity |
| title_full | Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity |
| title_fullStr | Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity |
| title_full_unstemmed | Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity |
| title_short | Debt Conservatism and Debt-Equity Choices: Evidence from REITs' Unused Debt Capacity |
| title_sort | debt conservatism and debt equity choices evidence from reits unused debt capacity |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/29524/1/IJBF%2013%2001%202017%201-28.pdf |
| work_keys_str_mv | AT wongwoeichyuan debtconservatismanddebtequitychoicesevidencefromreitsunuseddebtcapacity |