Capital Structure and the Cost of Capital for Untaxed Firms: The Case of REITs |
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| Authors: | Brian A. Marts Fayez A. Elayan |
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| Affiliation: | College of Business Administration, PO Box 15066, Northern Arizona University, Flagstaff, Arizona 86011-5066.;Department of Economics and Finance, Northeast Louisiana University, Monroe, Louisiana 71209. |
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| Abstract: | REITs offer the opportunity to examine the relationship between capital structure and cost of capital in the absence of corporate earnings taxes. The evidence supports the leverage clientele effect as the motivation for the use of financial leverage by REITs. |
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