Print Email Facebook Twitter The Impact of Misvaluation in the REIT Sector Part of: ERES 2017: 24th Annual Conference of the European Real Estate Society· list the conference papers Title The Impact of Misvaluation in the REIT Sector Author Breuer, Wolfgang Nguyen, Linh D. Steininger, Bertram I. Date 2017-06-28 Abstract By using the decomposing market-to-book model and the residual income model to estimate misvaluation, we find empirical evidence supporting the proposition that misvaluation has an impact on the financing decisions and liquidity management of REITs. Regarding the financing decisions, REITs experiencing a high increase in their stock prices will tend to increase their equity to exploit the low cost of capital relative to other financing forms. In addition, REITs are also more likely to increase debt issuances when their misvaluation is higher because overvalued REITs generally have easier access to debt. Finally, REITs use more cash than bank credit lines in liquidity management when they experience a misvaluation. Subject financial decisionliquidity managementmisvaluationreal estate investment trust (REIT) To reference this document use: http://resolver.tudelft.nl/uuid:36529be4-3382-4665-8d61-59e5d408bb98 Part of collection Conference proceedings Document type conference paper Rights (c) 2017 The Author(s) Files PDF 3 The Impact of Misvaluat ... Sector.pdf 376.64 KB Close viewer /islandora/object/uuid:36529be4-3382-4665-8d61-59e5d408bb98/datastream/OBJ/view