This paper studies the determinants of corporate hedging practices in the REIT industry between 1999 and 2001. We find a positive significant relation beween hedging and financial leverage, indicating the financial distress costs motive for using derivatives in the REIT industry. Using estimates...

Although recent literature has confirmed the importance of viewing a firm's capital structure choices of leverage and debt maturity as jointly determined, to date there has been little analysis of the importance of traditional governance variables on a firm's capital structure decisions using a...