Debt flexibility and investment - evidence from European listed real estate companies

Alexey Zhukovskiy, Ranoua Bouchouicha and Heidi Falkenbach

ERES from European Real Estate Society (ERES)

Abstract: In this paper we examine the relationship between debt flexibility and investment. Employing a hand-collected sample of debt structures of 102 European public real estate companies, we construct measures of the companies’ ability to substitute bank loans with other forms of debt. Our results show that there is a statistically and economically significant effect of debt flexibility on the investment activity of European listed real estate companies, the effect increasing during times of tight bank lending constraints. We confirm that the effect is linked to the debt structure, rather than the general degree of indebtness (leverage) of the company and robust to alternative specifications and to controlling for the institutional differences between countries.

Keywords: debt flexibility; debt stucture; Investment; public real estate; REIT (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2019-01-01
New Economics Papers: this item is included in nep-cfn and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2019-105 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2019_105

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().