Location
Denver, Colorado USA
Information
Prior research empirical research has produced conflicting findings on the lease-debt relation. While some studies provide evidence that leases substitute for debt, other studies show the lease-debt relation to be complementary. This study investigated the lease-debt relation in a sample of 233 restaurant and retail firms from 2006-2008. The results show that leasing and debt are significantly and inversely related. On average, $1 of leasing displaced approximately $0.50 of debt. The results also provide additional evidence that growth opportunities and firm size are important determinants of leasing.
Start Date
28-7-2011 4:45 PM
End Date
7-28-2011 4:45 PM
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An Empirical Investigation of the Lease-Debt Relation in the Restaurant and Retail Industry
Denver, Colorado USA
Prior research empirical research has produced conflicting findings on the lease-debt relation. While some studies provide evidence that leases substitute for debt, other studies show the lease-debt relation to be complementary. This study investigated the lease-debt relation in a sample of 233 restaurant and retail firms from 2006-2008. The results show that leasing and debt are significantly and inversely related. On average, $1 of leasing displaced approximately $0.50 of debt. The results also provide additional evidence that growth opportunities and firm size are important determinants of leasing.
https://scholarworks.umass.edu/refereed/ICHRIE_2011/Thursday/7