A Capital Structure Financial Analysis and Unmeasured Effect of each Countries Regime: the Real Estate Companies (REITS)
Konstantinos Liapis and
International Journal of Economics & Business Administration (IJEBA), 2014, vol. II, issue 3, 57-71
This article investigates the capital structure of Real Estate companies (REITS) and how it is connected with key financial ratios. Financial analysis provides significant insight of the company capital structure. Existing financial models accumulate the dynamics of different key factors that enhance or diminish the capabilities of a company to extend the debt finance. Previous literature review in trade-off theory, pecking order theory, agency costs and market timing hypothesis postulate the relation of capital structure with several financial measurements. The contribution of this research is to link debt to capital ratio with independent variables, which are important within the real estate business context. Panel data analysis of an adequate sample, from 2005 to 2010, of 371 international listed real estate companiesâ€™, materialize our assumptions of this linkage of debt ratio. The unmeasured effect of each countries regime is inherited into the equation with the incorporation of dummy variables. This valuation methodology is an easy accessible tool for professionals and practitioners engaged in real estate business.
Keywords: Capital structure; financial ratios; REITs (search for similar items in EconPapers)
JEL-codes: G32 M41 R30 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:ii:y:2014:i:3:p:57-71
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