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dc.contributor.authorAmbrose, Brent Wen
dc.contributor.authorFuerst, Franzen
dc.contributor.authorMansley, Nicken
dc.contributor.authorWang, Zilongen
dc.date.accessioned2019-05-07T23:30:26Z
dc.date.available2019-05-07T23:30:26Z
dc.identifier.issn1044-0283
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/292464
dc.description.abstractThis study investigates scale economies in European real estate companies. We examine the effects of size on revenue, expense, profitability ratios and capital costs using panel data regression. We find that larger real estate companies in Europe are able to generate higher revenue per unit of company size, incur lower costs and produce higher returns. Net Operating Income ratios and return ratios increase while Selling, General and Administrative expense ratios decrease with the size of a company. However, we do not find evidence that larger companies have lower cost of debt or lower weighted average cost of capital. From our analysis, it is evident that particularly small firms can reap substantial economies of scale as they grow. However, the benefits of further growth tend to be much more modest for larger companies. Given REITs are on average larger than comparable non-REITs this may explain why REITs have lower economies of scale in expenses and revenues than Non-REIT real estate companies.
dc.languageenen
dc.publisherElsevier BV
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.titleSize effects and economies of scale in European real estate companiesen
dc.typeArticle
prism.publicationNameGlobal Finance Journalen
dc.identifier.doi10.17863/CAM.39624
dcterms.dateAccepted2019-04-15en
rioxxterms.versionofrecord10.1016/j.gfj.2019.04.004en
rioxxterms.versionAM
rioxxterms.licenseref.urihttp://www.rioxx.net/licenses/all-rights-reserveden
rioxxterms.licenseref.startdate2019-04-15en
dc.contributor.orcidFuerst, Franz [0000-0001-5317-1469]
rioxxterms.typeJournal Article/Reviewen
cam.issuedOnline2019-04-17en
cam.orpheus.successThu Jan 30 10:47:41 GMT 2020 - Embargo updated*
rioxxterms.freetoread.startdate2020-10-17


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Except where otherwise noted, this item's licence is described as Attribution-NonCommercial-NoDerivatives 4.0 International