Real Estate Investments, Product Market Competition and Stock Returns
研究发现房地产投资通过限制经营灵活性增加公司风险，但在寡头行业中，这类投资能提升市场势力并降低现金流波动，从而与股票回报呈负相关。
Abstract By limiting operating flexibility, real estate investments are found to increase firm risk, thus expected returns. This study introduces product market competition as a critical determinant of the relation between real estate investments and stock returns. As part of capacity strategies, these investments are generally associated with increased market power and lower cash flow volatility in oligopolistic industries. I present a simple model of oligopolistic competition showing a negative relation between real estate holdings and firm beta, and empirically confirm this prediction. Controlling for product market competition enhances identification of the endogenous relation between real estate investments and stock returns.