Evaluating the impact of economic factors on REITs' capital structure around the world

Antonios Rovolis (Department of Geography, Harokopio University, Athens, Greece)
Andreas Feidakis (Bank of Greece, Athens, Greece)

Journal of Property Investment & Finance

ISSN: 1463-578X

Publication date: 28 January 2014



This paper aims to examine the determinants of the capital structure of real estate investment trusts (REITs) across the world and explore whether this structure is characterized by any common factors.


Endogenous and exogenous factors that affect the financial management of real estate firms are identified in the analysis. “Regular” (static) panel data regression analysis, as well as dynamic panel data techniques, is applied to a panel of listed real estate firms from 2005 to 2010.


Empirical results showed that factors such as tangibility, size of the company, growth opportunities, assets turnover affect positively the financial leverage of REITs; conversely, other determinants, being debit's cost, GDP, and long-term interest rates, are negatively correlated with the financial gearing of the REITs.

Practical implications

This paper identifies factors that determine the capital structure of REITs around the world. Firm executives and policy makers in different countries may wish to adjust their policies (regarding capital structure) according to the empirical findings.


This study, using a comprehensive dataset from all over the world, investigates whether there are solid and mutual factors that can characterize the capital structure of REITs.



Rovolis, A. and Feidakis, A. (2014), "Evaluating the impact of economic factors on REITs' capital structure around the world", Journal of Property Investment & Finance, Vol. 32 No. 1, pp. 5-20. https://doi.org/10.1108/JPIF-08-2013-0050

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