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| Content Provider | Springer Nature Link |
|---|---|
| Author | Hill, Matthew D. Kelly, G. Wayne Hardin, William G. |
| Copyright Year | 2010 |
| Abstract | We examine the relation between firm value and liquidity among REITs. Results show shareholders benefit from both cash and unused credit line capacity. The market values an additional dollar of cash at a premium and, as theory predicts, unused credit lines are significantly less valued than cash. Evidence suggests an increase in the market value of liquidity during the recent financial crisis. We also find that financial characteristics quantifying financial constraint influence the value of REIT financial flexibility. Most notably, the value of cash decreases with remaining credit line capacity. Although prior studies argue that cash and credit lines are substitutes, this is one of the first tests of whether the market prices this substitutability. |
| Starting Page | 383 |
| Ending Page | 401 |
| Page Count | 19 |
| File Format | |
| ISSN | 08955638 |
| Journal | The Journal of Real Estate Finance and Economics |
| Volume Number | 45 |
| Issue Number | 2 |
| e-ISSN | 1573045X |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2010-09-21 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | REITs Cash Liquidity Credit lines Financial flexibility Firm value Finance/Investment/Banking Regional/Spatial Science |
| Content Type | Text |
| Resource Type | Article |
| Subject | Finance Urban Studies Accounting Economics and Econometrics |
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