The Cost of Financial Flexibility: Information Opacity, Agency Conflicts and REIT at-the-Market (ATM) Equity Offerings

Autor:	Benjamin Scheick, Shelly W. Howton, George D. Cashman, David M. Harrison
Rok vydání:	2021
Předmět:	Finance Flexibility (engineering) Economics and Econometrics ComputingMilieux_THECOMPUTINGPROFESSION business.industry Equity (finance) Market timing Implicit cost Urban Studies Cost of capital Accounting Real estate investment trust Business Capital market Financial services
Zdroj:	The Journal of Real Estate Finance and Economics. 66:505-541
ISSN:	1573-045X 0895-5638
DOI:	10.1007/s11146-021-09821-9
Popis:	Using a sample of publicly traded U.S. REITs, we examine the impact of at-the-market (ATM) equity offerings on participating firms’ cost of capital. While ATM programs can improve a firm’s financial flexibility, capital market access, and market timing capabilities, they also may engender agency conflicts and increase the information opacity of the firm’s operations. Consistent with these adverse effects, we document a positive relation between ATM program availability and the implied cost of equity capital. These core findings are most pronounced for firms that are relatively opaque, thus providing further evidence of an information-based channel for the cost of capital effect.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::afaca4ba1de8d7b526bf35ab3b822792 https://doi.org/10.1007/s11146-021-09821-9 Zobrazit plný text záznamu Full text from SpringerLink