Reit Dividend Determinants: Excess Dividends and Capital Markets
William G. Hardin III
Florida International University (FIU) - College of Business Administration
Matthew D. Hill
University of Mississippi - Department of Finance
Real Estate Economics, Vol. 36, Issue 2, pp. 349-369, Summer 2008
The determinants of excess dividend payments above mandatory requirements in real estate investment trusts (REITs) are evaluated. Payment of excess dividends is related to factors associated with reduced agency costs, strong operating performance, the implementation of a stock repurchase plan and an ability to access short-term bank debt. Recognizing that access to external capital is essential for long-term growth, REITs manage dividend policy to allow for capital acquisition in the form of both equity and debt. The acquisition and use of short-term bank debt provides REIT management flexibility in determining dividend policy.
Number of Pages in PDF File: 21Accepted Paper Series
Date posted: May 8, 2008
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