Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/44468
Authors: 
Kurzrock, Björn-Martin
Mokinski, Frieder
Schindler, Felix
Westerheide, Peter
Year of Publication: 
2011
Series/Report no.: 
ZEW Discussion Papers 11-014
Abstract: 
This paper analyzes whether predominantly non-listed corporations in the residential property industry systematically adjust their capital structure to changing financing requirements. Since previous research almost exclusively focused on listed companies, little is known about the considerations that drive the choice of capital structure of nonlisted companies. We therefore adopt established testing approaches for the pecking order theory and the trade-off theory from the finance literature, which we then apply to a sample of 1,300 German residential property companies. These companies are characterized by various legal forms and large differences in size. We find that capital structure adjustment behavior differs largely among property companies of different legal forms. While housing cooperatives behave in line with the trade-off theory, the behavior of stock companies and corporations with limited liability is more in line with the pecking order theory.
Subjects: 
Financial Leverage
Capital Structure
Property Companies
Real Estate Finance
JEL: 
G32
C20
L85
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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