Dissertations, Theses, and Capstone Projects

Date of Degree

6-2025

Document Type

Doctoral Dissertation

Degree Name

Doctor of Philosophy

Program

Business

Advisor

Jun Wang

Committee Members

Armen Hovakimian

Yao Shen

Karl Lang

Subject Categories

Corporate Finance | Real Estate

Keywords

Ownership structure, Institutional ownership, Insider ownership, capital structure, Natural disasters, REITs, Diversification

Abstract

This dissertation consists of two chapters about how ownership structure affects REITs’ capital structure and property transactions.

Chapter 1: The Influence of Ownership Structure on REITs’ Financing Decisions
This essay explores how ownership structure affects REITs’ financing decisions following natural disasters. The results show that REITs with high insider ownership tend to increase leverage in the aftermath of such events, while those with high institutional ownership, especially long-term institutional ownership, are more likely to reduce leverage. These findings provide further evidence of the monitoring role of institutional investors in shaping REITs’ financial strategies during times of crisis.

Chapter 2: Property Diversification, Ownership Structure, and REIT Valuation
This essay examines the impact of property type diversification on the valuation of REITs, with a particular focus on the moderating roles of ownership structure and external shocks such as COVID-19 and natural disasters. Using property-level panel data of REITs, I find a consistent diversification discount, whereby REITs with greater property type diversification are associated with lower firm value. This relationship is further influenced by ownership structure: institutional ownership amplifies the diversification discount, whereas insider ownership appears to mitigate it, suggesting that insiders may possess the firm-specific expertise necessary to manage diversified portfolios effectively.

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