How Do Firms Finance Nonprimary Market Investments? Evidence from REITs
研究房地产投资信托基金（REITs）在主要市场与非主要市场收购商业地产时，融资方式有何不同，发现其在主要市场更少使用抵押贷款以保持运营灵活性。
Abstract This study explores the impact of investment characteristics, mainly investment location relative to the firm's primary market, on financing choices by real estate investment trusts (REITs). Using a large sample of commercial property acquisitions, we show that REITs are 4–8% less likely to use secured (mortgage) debt when acquiring properties in their primary markets than elsewhere. The documented evidence supports a demand‐side story for the relation between investment characteristics and financing. Moreover, the evidence is consistent with the hypothesis that REITs avoid mortgage financing in their primary markets to preserve operational flexibility in those markets.