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dc.contributor.authorDemirci, İ.
dc.contributor.authorEichholtz, P.
dc.contributor.authorYönder, Erkan
dc.date.accessioned2019-01-15T08:20:15Z
dc.date.available2019-01-15T08:20:15Z
dc.date.issued2020-11
dc.identifier.issn0895-5638en_US
dc.identifier.urihttp://hdl.handle.net/10679/6101
dc.identifier.urihttps://link.springer.com/article/10.1007/s11146-017-9645-9
dc.description.abstractThis paper investigates whether corporate diversification by property type and by geography reduces the costs of debt capital. It employs asset-level information on the portfolios of U.S. REITs to measure diversification and looks at two of their main sources of debt capital: 1,173 commercial mortgages and 952 bank loans. The paper finds that diversification across different property types does indeed dependably reduce the cost of these different types of debt. The effect is about 7 basis points for bank loans if a firm’s property Herfindahl Index is lowered by one standard deviation and this effect gets stronger for REITs with worse financial health – as measured by the interest coverage ratio. The corresponding effect for commercial mortgages is around 22 basis points for collateral diversification by property type. After the crisis, the salience of the collateral asset increases. For diversification across regions, we do not find a consistent relationship between real asset diversification and loan pricing.en_US
dc.language.isoengen_US
dc.publisherSpringeren_US
dc.relation.ispartofThe Journal of Real Estate Finance and Economics
dc.rightsrestrictedAccess
dc.titleCorporate diversification and the cost of debt: evidence from REIT bank loans and mortgagesen_US
dc.typeArticleen_US
dc.peerreviewedyesen_US
dc.publicationstatusPublisheden_US
dc.contributor.departmentÖzyeğin University
dc.contributor.authorID(ORCID 0000-0003-4758-7841 & YÖK ID 129925) Yönder, Erkan
dc.contributor.ozuauthorYönder, Erkan
dc.identifier.volume61
dc.identifier.issue3
dc.identifier.startpage316en_US
dc.identifier.endpage368en_US
dc.identifier.wosWOS:000563640100002
dc.identifier.doi10.1007/s11146-017-9645-9en_US
dc.subject.keywordsCost of debten_US
dc.subject.keywordsDiversificationen_US
dc.subject.keywordsREITen_US
dc.identifier.scopusSCOPUS:2-s2.0-85040378985
dc.contributor.authorMale1
dc.relation.publicationcategoryArticle - International Refereed Journal - Institutional Academic Staff


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