This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Evidence from Tax-Exempt Firms on Motives for Participating in Sale-Leaseback Agreements

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Fayez A. Elayan (Dept. of Accounting, Brock University)
Thomas O. Meyer () (Dept. of Marketing & Finance, Southeastern Louisiana University, SLU 10844, Hammond, LA 70402)
Jingyu Li (Dept. of Accounting, Brock University)
Abstract

Previous research finds evidence that tax factors motivate the participants in leasing transactions. Tax-arbitrage arguments predict that leasing participants gain when the lessor’s tax rate exceeds that of the lessee. The research employs a sample of effectively tax-exempt REIT lessors to explore alternative leasing motives. Changes in REIT qualification rules are examined to develop an Agency-Cost, and competing Income-Retention Hypothesis for lessors. The rules and changes suggest that REIT management has the incentive, motive and opportunity to make real-estate investments quickly. The evidence developed is consistent with agency-costs arising from the possibility that they may overpay for properties.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol28n04/03.381_410.pdf
File Format: application/pdf
File Function: Full text
Download Restriction: no

Publisher Info
Article provided by American Real Estate Society in its journal journal of Real Estate Research.

Volume (Year): 28 (2006)
Issue (Month): 4 ()
Pages: 381-410
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:jre:issued:v:28:n:4:2006:p:381-410

Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Email:
Web page: http://www.aresnet.org/

Order Information:
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Email:
Web: http://aux.zicklin.baruch.cuny.edu/jrer/about/get.htm

For technical questions regarding this item, or to correct its listing, contact: (JRER Graduate Assistant/Webmaster).

Related research
Keywords:

Other versions of this item:

Find related papers by JEL classification:
L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March. [Downloadable!] (restricted)
  2. Myers, Stewart C & Dill, David A & Bautista, Alberto J, 1976. "Valuation of Financial Lease Contracts," Journal of Finance, American Finance Association, vol. 31(3), pages 799-819, June. [Downloadable!] (restricted)
  3. Mann, Steven V & Sicherman, Neil W, 1991. "The Agency Costs of Free Cash Flow: Acquisition Activity and Equity Issues," Journal of Business, University of Chicago Press, vol. 64(2), pages 213-27, April. [Downloadable!] (restricted)
  4. Lynn M. Fisher, 2004. "The Wealth Effects of Sale and Leasebacks: New Evidence," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(4), pages 619-643, December. [Downloadable!] (restricted)
  5. M.Ameziane Lasfer & Mario Levis, 1998. "The Determinants of the Leasing Decision of Small and Large Companies," European Financial Management, Blackwell Publishing Ltd, vol. 4(2), pages 159-184. [Downloadable!] (restricted)
  6. William G. Hardin, III & Marvin L. Wolverton, 1999. "Equity REIT Property Acquisitions: Do Apartment REITs Pay a Premium?," Journal of Real Estate Research, American Real Estate Society, vol. 17(1), pages 113-126. [Downloadable!]
  7. Boehmer, Ekkehart & Masumeci, Jim & Poulsen, Annette B., 1991. "Event-study methodology under conditions of event-induced variance," Journal of Financial Economics, Elsevier, vol. 30(2), pages 253-272, December. [Downloadable!] (restricted)
  8. Lewellen, Wilbur G & Long, Michael S & McConnell, John J, 1976. "Asset Leasing in Competitive Capital Markets," Journal of Finance, American Finance Association, vol. 31(3), pages 787-98, June. [Downloadable!] (restricted)
  9. Jaime R. Alvayay & Ronald C. Rutherford & William S. Smith, 1995. "Tax Rules and the Sale and Leaseback of Corporate Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 23(2), pages 207-238. [Downloadable!] (restricted)
  10. Ezzell, John R. & Vora, Premal P., 2001. "Leasing versus purchasing: Direct evidence on a corporation's motivations for leasing and consequences of leasing," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(1), pages 33-47. [Downloadable!] (restricted)
  11. Slovin, Myron B & Sushka, Marie E & Polonchek, John A, 1990. " Corporate Sale-and-Leasebacks and Shareholder Wealth," Journal of Finance, American Finance Association, vol. 45(1), pages 289-99, March. [Downloadable!] (restricted)
  12. Allen, Paul R. & Sirmans, C. F., 1987. "An analysis of gains to acquiring firm's shareholders : The special case of REITs," Journal of Financial Economics, Elsevier, vol. 18(1), pages 175-184, March. [Downloadable!] (restricted)
  13. Brent W. Ambrose & Peter Linneman, 2001. "Reit Organizational Structure and Operating Characteristics," Journal of Real Estate Research, American Real Estate Society, vol. 21(3), pages 141-162. [Downloadable!]
  14. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  15. Marcus T. Allen & Ronald C. Rutherford & Thomas M. Springer, 1993. "The Wealth Effects of Corporate Real Estate Leasing," Journal of Real Estate Research, American Real Estate Society, vol. 8(4), pages 567-578. [Downloadable!]
  16. Lee, D Scott, 1992. " Management Buyout Proposals and Inside Information," Journal of Finance, American Finance Association, vol. 47(3), pages 1061-79, July. [Downloadable!] (restricted)
  17. James R. Webb & Willard McIntosh, 1986. "Real Estate Investment Acquisition Rules for REITs: A Survey," Journal of Real Estate Research, American Real Estate Society, vol. 1(1), pages 77-98. [Downloadable!]
Full references

Statistics
Access and download statistics

Did you know? There are NEP reports in over 80 fields that deliver new research to your email.

This page was last updated on 2009-12-3.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.