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Impact of Debt Leverage on the Thai Property Fund' Performance |
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| รหัสดีโอไอ | |
| Creator | Natkawin Jiamchoatpatanakul |
| Title | Impact of Debt Leverage on the Thai Property Fund' Performance |
| Publisher | Stamford International University |
| Publication Year | 2558 |
| Journal Title | ASEAN Journal of Management & Innovation |
| Journal Vol. | 2 |
| Journal No. | 2 |
| Page no. | 13-23 |
| Keyword | Debt use, Property Fund Return, Leverage, Fund Regulation Constrain, REIT Conversion |
| ISSN | 2351-0307 |
| Abstract | Thai property fund is limited a maximum debt use at 10% of NAV, which differ from many international REITs with more flexible regulation. The two largest REIT market also exhibit different relationships of positive and negative coefficients between debt use, and returns of Australia and US REITs respectively. Regarding debt use and the property fund' returns, the research conducts not only a quantitative research to find a statistical relationship, but also a qualitative research to understand rationales. Similar to Australia REIT, return of Thai fund exhibits statistically positive relationships to debt in both full and subperiod analysis. The only supporting reason is that the large fund can access to debt funding to secure commercial loan, which is consistent to other studies with findings of positive relationship between size and liquidity, and degree of debt leverage. Under regulatory constraints of debt payback after 90% dividend payment and no collateral, Thai property fund is not majorly discussed in terms of yield spread and level of debt leverage like other international REITs. Unlike other REITs, the interview result does not relate with the pecking order theory owing to low debt allowance. Thai property fund show dissimilar rationales of debt use compared to other international REITs, therefore it might benefit from converting to be REIT because of positive leverage from higher degree of debt use. |
