Housing, financial conditions and mental health during a pandemic

Marco Felici

ERES from European Real Estate Society (ERES)

Abstract: DeAngelo, Gonçalves, and Stulz (2018) offer a “credit-card” perspective of debt and document that firms periodically deleverage to restore financial flexibility. However, the valuation consequences of deleveraging have been left unexplored. Lines of credit, closely monitored by the associated lending institutions, represent the closest analog to corporate credit-cards. Employing a sample of equity issuances, we find that deleveraging via repayments of credit lines is viewed favorably by markets. We posit that repayments replenish credit lines and restore financial flexibility, while preserving bank monitoring (Acharya, Almeida, Ippolito, Perez, 2014). We refer to the integrated beneficial effect as Monitored Financial Flexibility.

Keywords: Credit lines; Deleveraging; Monitored financial flexibility; Real Estate Investment Trusts (REITs) (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/eres-id-eres2022-125 (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:2022_125

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 ().