Product Market Competition and Corporate Real Estate Investment under Demand Uncertainty

被引：16

作者：

Ambrose, Brent W. ^{[1
]}

Diop, Moussa ^{[2
]}

Yoshida, Jiro ^{[1
]}

机构：

[1] Penn State Univ, Smeal Coll Business, University Pk, PA 16802 USA

[2] Univ Wisconsin, Wisconsin Sch Business, Madison, WI 53706 USA

来源：

REAL ESTATE ECONOMICS | 2017年 / 45卷 / 03期

关键词：

STOCK RETURNS; ENTRY-DETERRENCE; CROSS-SECTION; CAPACITY; PERFORMANCE; OPTIONS; SALE; FIRM;

D O I：

10.1111/1540-6229.12150

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This article theoretically and empirically analyzes the interactions among corporate real estate investment, product market competition and firm risk. In our model, firms own strategic real estate or lease generic real estate. Our model predicts that strategic real estate ownership is positively correlated with industry concentration and negatively related to demand uncertainty. Also, firm risk is higher for firms with more strategic real estate operating in a more concentrated market. This prediction arises because smaller investments induce greater market competition, which effectively eliminates the right tail of the firm's profit distribution. We provide strong empirical support for our predictions. In particular, firm value is more volatile in less competitive markets for a given level of demand uncertainty.

引用

页码：521 / 590

页数：70

共 33 条

[1] Real Options, Product Market Competition, and Asset Returns [J].

Aguerrevere, Felipe L. .

JOURNAL OF FINANCE, 2009, 64 (02) :957-983

[2] Capacity precommitment as a barrier to entry: A Bertrand-Edgeworth approach [J].

Allen, B ;

Deneckere, R ;

Faith, T ;

Kovenock, D .

ECONOMIC THEORY, 2000, 15 (03) :501-530

[3] TAX RULES AND THE SALE AND LEASEBACK OF CORPORATE REAL-ESTATE [J].

ALVAYAY, JR ;

RUTHERFORD, RC ;

SMITH, WS .

REAL ESTATE ECONOMICS, 1995, 23 (02) :207-238

[4]

Ambrose Brent., 1990, J REAL ESTATE FINANC, V3, P307, DOI DOI 10.1007/BF00178855

[5]

Angrist JD, 2009, MOSTLY HARMLESS ECONOMETRICS: AN EMPIRICISTS COMPANION, P1

[6]

Benjamin JD, 2011, RES ISS REAL ESTATE, P29

[7] Optimal investment, growth options, and security returns [J].

Berk, JB ;

Green, RC ;

Naik, V .

JOURNAL OF FINANCE, 1999, 54 (05) :1553-1607

[8] Corporate real estate ownership implications: International performance evidence [J].

Brounen, D ;

Eichholtz, PMA .

JOURNAL OF REAL ESTATE FINANCE AND ECONOMICS, 2005, 30 (04) :429-445

[9]

Brounen D, 2008, J REAL ESTATE RES, V30, P293

[10] HOLDING IDLE CAPACITY TO DETER ENTRY [J].

BULOW, J ;

GEANAKOPLOS, J ;

KLEMPERER, P .

ECONOMIC JOURNAL, 1985, 95 (377) :178-182

← 1 2 3 4 →