The Term Structure of Lease Rates with Endogenous Default Triggers and Tenant Capital Structure: Theory and Evidence

NCUIR > School of Management at National Central University > Department of Finance > journal & Dissertation > Item 987654321/51727

Please use this identifier to cite or link to this item: http://ir.lib.ncu.edu.tw/handle/987654321/51727

Title:	The Term Structure of Lease Rates with Endogenous Default Triggers and Tenant Capital Structure: Theory and Evidence
Authors:	Agarwal,S;Ambrose,BW;Huang,HM;Yildirim,Y
Contributors:	財務金融學系
Keywords:	CORPORATE-DEBT;CREDIT RISK;VALUATION;CONTRACTS;DETERMINANTS;SUBSTITUTES;BANKRUPTCY;TAXES;MODEL
Date:	2011
Issue Date:	2012-03-27 19:03:40 (UTC+8)
Publisher:	國立中央大學
Abstract:	This paper focuses on the defaultable lease rate term structure with endogenous default. We combine the competitive lease market argument proposed by Grenadier (1996) and the endogenous default structural model proposed by Leland and Toft (1996) to examine the interaction between the lessee's capital structure and the equilibrium lease rate. Under this framework, determining the lease rate is a simultaneous equation problem that captures the trade-off between debt and lease financing. Using data on 2,482 real estate lease transactions, we empirically confirm the predictions derived from the numerical analysis of the model.
Relation:	JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS
Appears in Collections:	[Department of Finance] journal & Dissertation

Files in This Item:

File	Description	Size	Format
index.html		0Kb	HTML	668	View/Open

社群 sharing