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Customer Concentration and Corporate Real Estate Holdings

Author

Listed:
  • Shiang Liu

    (University of Wisconsin-La Crosse)

  • Mingming Qiu

    (Michigan State University)

  • Shiyi Zhang

    (University of Miami)

Abstract

We present new empirical evidence that higher customer concentration leads to lower corporate real estate holdings at the supplier firm level. Further evidence shows that this effect is causal and more pronounced when the likelihood/impact of losing primary customers is higher or when suppliers have less bargaining power. Finally, we show that firms with a concentrated customer base tend to choose capitalized leasing in lieu of holding real estate.

Suggested Citation

  • Shiang Liu & Mingming Qiu & Shiyi Zhang, 2022. "Customer Concentration and Corporate Real Estate Holdings," The Journal of Real Estate Finance and Economics, Springer, vol. 65(3), pages 492-523, October.
    • Handle: RePEc:kap:jrefec:v:65:y:2022:i:3:d:10.1007_s11146-020-09817-x
    DOI: 10.1007/s11146-020-09817-x
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    References listed on IDEAS

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