Weitere Artikel dieser Ausgabe durch Wischen aufrufen
We are grateful for the constructive comments from Zhilan Feng, Robert Edelstein, Zhonghua Wu, Xudong An, Kwong Wing Chau, Hong Yu Liu, and all the participants of the Asia-Pacific Real Estate Research Symposium 2012 held at Tsinghua University. We also wish to thank National University of Singapore for financial support.
This paper examines the information content of debt raising and refinancing activities of Real Estate Investment Trusts (REITs) in normal and tight credit markets. Based on a sample of 340 debt announcements made by REITs in Japan (J-REITs) between 2002 and 2011, we observe that they are associated with a positive stock price reaction, averaging 1.05 % over a 4-day window. Stratifying the sample into debt raising and debt refinancing, we find strong evidence that the positive economic gains associated with debt announcements flowed from the pool of debt refinancing announcements. They registered a significant mean return of 1.20 % over the 4-day window, as opposed to 0.07 % for the pool of debt raising activities. Further investigation shows that the positive market reaction to debt refinancing is more pronounced during the credit crunch of 2007 to 2009. Although debt refinancing does not lead to any change in the firm’s capital structure, it still contains valuable information about the firm’s prospect, especially in tight credit markets.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Benston, G. J., & Smith, C. W., Jr. (1976). A transaction cost approach to the theory of financial intermediation. The Journal of Finance, 31(2), 215–231. CrossRef
Berlin, M., & Mester, L. J. (1992). Debt covenants and renegotiation. Journal of Financial Intermediation, 2(2), 95–133. CrossRef
Billett, M. T., Flannery, M. J., & Jon, A. G. (1995). The effect of lender identity on a borrowing firm’s equity return. The Journal of Finance, 50(2), 699–718. CrossRef
Boyd, J. H., & Prescott, E. C. (1986). Financial intermediary-coalitions. Journal of Economic Theory, 38(2), 211–232. CrossRef
Brounen, D., & Eichholtz, P. M. A. (2001). Capital structure theory: evidence from European property companies’ capital offerings. Real Estate Economics, 29(4), 615–632. CrossRef
Campbell, T. S., & Kracaw, W. A. (1980). Information production, market signalling, and the theory of financial intermediation. The Journal of Finance, 35(4), 863–882. CrossRef
Campbell, J., Lo, A., & MacKinlay, C. (1996). The econometrics of financial markets. Princeton: Princeton University Press.
Campbell, R. D., Petrova, M., & Sirmans, C. F. (2003). Wealth effects of diversification and financial deal structuring: evidence from REIT property portfolio acquisitions. Real Estate Economics, 31(3), 347–366. CrossRef
Dennis, S. A., & Mullineaux, D. J. (2000). Syndicated loans. Journal of Financial Intermediation, 9(4), 404–426. CrossRef
Dhillon, U. S., Sa-Aadu, J., & Shilling, J. D. (1998). A re-examination of REIT security offerings. NY: Wisconsin Center for Urban Land Economic Research. Working Paper.
Diamond, D. W. (1984). Financial intermediation and delegated monitoring. The Review of Economic Studies, 51(3), 393–414. CrossRef
Diamond, D. W. (1991). Monitoring and reputation: the choice between bank loans and directly placed debt. Journal of Political Economy, 99(4), 689–721. CrossRef
Eckbo, B.E., Masulis, R.W., Norli, Ø. (2007). Security offerings. In: Handbook of empirical corporate finance (pp. 233–373). San Diego: Elsevier.
Fama, E. (1985). What’s different about banks? Journal of Monetary Economics, 15(1), 29–39. CrossRef
Gertner, R., & Scharfstein, D. (1991). A theory of workouts and the effects of reorganization law. The Journal of Finance, 46(4), 1189–1222.
Ghosh, C., Nag, R., & Sirmans, C. F. (1999). An analysis of seasoned equity offerings by equity REITs, 1991 to 1995. Journal of Real Estate Finance and Economics, 19(3), 175–192. CrossRef
Ghosh, C., Nag, R., & Sirmans, C. F. (2000). The pricing of seasoned equity offerings: evidence from REITs. Real Estate Economics, 28(3), 363–384. CrossRef
Ghosh, C., Nag, R., & Sirmans, C. F. (2001). Pricing effects of debt issues of equity REITs. Journal of Real Estate Portfolio Management, 7(3), 239–246.
Gorton, G., & Kahn, J. (1993). The design of bank loan contracts, collateral, and renegotiation. National Bureau of Economic Research , Working Paper.
Grossman, S. J., & Hart, O. (1982). Corporate financial structure and managerial incentives. In J. J. McCall (Ed.), The economics of information and uncertainty. Chicago: University of Chicago Press.
Hardin, W. G., III, & Wu, Z. (2010). Banking relationships and REIT capital structure. Real Estate Economics, 38(2), 257–284. CrossRef
Howe, J. S., & Shilling, J. D. (1988). Capital structure theory and REIT security offerings. The Journal of Finance, 43(4), 983–993. CrossRef
James, C. (1987). Some evidence on the uniqueness of bank loans. Journal of Financial Economics, 19(2), 217–235. CrossRef
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. CrossRef
Kane, E. J., & Burton, G. M. (1965). Bank portfolio allocation, deposit variability, and the availability doctrine. The Quarterly Journal of Economics, 79(1), 113–134. CrossRef
Leland, H. E., & Pyle, D. H. (1977). Informational asymmetries, financial structure, and financial intermediation. The Journal of Finance, 32(2), 371–387. CrossRef
Lummer, S. L., & McConnell, J. J. (1989). Further evidence on the bank-lending process and the capital-market response to bank loan agreements. Journal of Financial Economics, 25(1), 99–122. CrossRef
Merton, H. M., & Rock, K. (1985). Dividend policy under asymmetric information. The Journal of Finance, 40(4), 1031–1051. CrossRef
Mikkelson, W. H., & Partch, M. M. (1986). Valuation effects of security offerings and the issuance process. Journal of Financial Economics, 15(1–2), 31–60. CrossRef
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. CrossRef
Ooi, J. T. L. (2000a). Corporate reliance on bank loans: an empirical analysis of UK property companies. Journal of Property Investment and Finance, 18(1), 103–120. CrossRef
Ooi, J. T. L. (2000b). Managerial opportunism and the capital structure decisions of property companies. Journal of Property Investment and Finance, 18(3), 316–331. CrossRef
Ooi, J. T. L., Ong, S. E., & Li, L. (2010). An analysis of the financing decisions of REITs: the role of market timing and target leverage. Journal of Real Estate Finance and Economics, 40, 130–160. CrossRef
Ooi, J. T. L., Ong, S. E., & Neo, P. H. (2011). The wealth effects of property acquisitions: evidence from Japanese and Singaporean REITs. Real Estate Economics, 39(3), 487–505. CrossRef
Ooi, J. T. L., Ong, S. E., & Wong, W. C. (2012). Can bank lines of credit protect REITs against a credit crisis? Real Estate Economics, 40(2), 285–316. CrossRef
Preece, D., & Mullineaux, D. J. (1996). Monitoring, loan renegotiability, and firm value: the role of lending syndicates. Journal of Banking and Finance, 20(3), 577–593. CrossRef
Slovin, M. B., Johnson, S. A., & Glascock, J. L. (1992). Firm size and the information content of bank loan announcements. Journal of Banking and Finance, 16(6), 1057–1071. CrossRef
Stiglitz, J. E. (1988). Why financial structure matters. The Journal of Economic Perspectives, 2(4), 121–126. CrossRef
Sufi, A. (2007). Information asymmetry and financing arrangements: evidence from syndicated loans. The Journal of Finance, 62(2), 629–668. CrossRef
- Debt Raising and Refinancing by Japanese REITs: Information Content in a Credit Crunch
Cheng Keat Tang
Seow Eng Ong
Joseph T. L. Ooi
- Springer US
microm, Neuer Inhalt/© Stellmach, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, Avaloq/© Avaloq Evolution AG, Avaloq/© Avaloq