skip to primary navigationskip to content
 

Capital Expenditures and the Property Cycle: Evidence from Real Estate Investment Trusts

Project Title: Capital Expenditures and the Property Cycle: Evidence from Real Estate Investment Trusts

PI: Eva Steiner (Land Economy)

Project Period: April 2015 - February 2016

Recent research finds a disposition effect in REIT property holdings. We
propose a value-add investment strategy as an alternative explanation. The
main value-add mechanism in property investment is capital expenditure
(CAPEX). However, CAPEX is a real option whose exercise depends on its
moneyness, which is a function of the economic environment. We will
study the drivers and implications of variation in REIT CAPEX through the
property cycle to explore the empirical evidence for the proposed rational
explanation for the alleged disposition effect in REIT property holdings. Our
results may also guide practitioners in their choice of an optimal CAPEX
reserve.

End of Award Report - March 2016

Project Update - August 2015

 

RSS Feed Latest news

CERF Fellow Dr. Bang Dang Nguyen - paper will be presented at the AFA Annual Meeting 2020 in San Diego

Sep 26, 2019

Political Connections and Firm Value: Evidence from Close Gubernatorial Elections, joint with Q.A. Do (SciencesPo Paris) and Yen-Teik Lee (Curtin University), is accepted and will be presented at the AFA Annual Meeting 2020 in San Diego.

CERF Scholar Shiqi Chen presented her paper at Leeds University Business School

Jun 28, 2019

Shiqi Chen presented her paper entitled “Financial Policies and Internal Governance with Heterogeneous Risk Preferences” (joint with Bart Lambrecht) in the Accounting and Finance seminar at Leeds University Business School, the Finance seminar at Essex Business School, CERF Lunch Seminar at Cambridge Judge Business School, and at the 2019 Annual Real Options Conference in London.

View all news