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Open Access. Powered by Scholars. Published by Universities.®

Edith Cowan University

2014

Series

Financial leverage

Articles 1 - 1 of 1

Full-Text Articles in Business

Interest Rate Risk Of Australian Reits: A Panel Analysis, Jaime L. Yong, Abhay Singh Jan 2014

Interest Rate Risk Of Australian Reits: A Panel Analysis, Jaime L. Yong, Abhay Singh

Research outputs 2014 to 2021

Management structures of many Australian REITs have shifted towards internal property management since 2001. Sector returns have been rewarding until the Global Financial Crisis, but rising costs of debt and years of aggressive borrowing have eroded REIT values. Externally managed trusts had relatively higher levels of debt than internally managed counterparts thus increasing the sensitivities to interest rate risks. Yet internally managed REITs engage in a wider set of operating activities which compound market and financial risks. This study uses panel and panel quantile regressions to examine the joint impact of financial leverage and management structure on REIT returns in …