Small- and medium-sized enterprises (SMEs) are the backbone of the economy and their need to be financed remains one of the most discussed topics in the business world (World Bank, 2014; IFC, 2010). Financial leasing is a midterm financial instrument mainly used for the procurement of machinery,...

What incentives do managers face that might give rise to inefficient investments in leases? If managers make inefficient investments in leases, what economic consequences arise for those managers and their firms? We develop a model of expected investments in leased assets and use the residuals...

This policy letter provides evidence for the crucial importance of the initial regulatory treatment for the further development of financial innovations by exploring the emergence and initial legal framing of off-balance-sheet leasing in Germany. Due to a missing legal framework, lease contracts...

Der auf der Geschäftslage und den Geschäftserwartungen der Leasinggesellschaften basierende Investitionsindikator signalisiert für das Jahr 2019 einen Anstieg der Ausrüstungsinvestitionen von nominal 2,1%, nach einem Anstieg um 5,0% im Vorjahr. Für das kommende Jahr ist nochmals mit einem...

Recent press on piracy and digital goods touts the policy of leasing (as opposed to selling) as a “piracy killer.” However, the effectiveness of leasing is still controversial for digital goods in terms of the profitability for alternate supply chain members, including content providers...

This paper argues leasing is a risk-sharing mechanism: risk-tolerant lessors (capital owners) provide insurance to financially constrained risk-averse lessees (capital borrowers) against systematic capital price fluctuations. We provide strong empirical evidence to support this novel risk...

The problem of determining optimal rents in commercial real estate leases (as credit contracts, investments and as part of the supply chain) affects many companies in various industries such as retailing, healthcare, manufacturing, leasing, etc.. The advent of companies such as WeWork,...

We investigate the economic and environmental implications of jointly implementing leasing and modularity, two prominent circular economy strategies, and their interaction. We develop a durable goods model to obtain insights for firms considering the use of these strategies. We first analyze the...

Oil and gas leases between mineral owners and extraction firms ubiquitously include royalty and primary term clauses. The royalty denotes the share of revenue that is paid to the mineral owner, and the primary term specifies the date by which the firm must complete a well, lest it lose the...

Leases are quite relevant to a large number of enterprises. Due to the fact that a lease reduces an entity's exposure to risks inherent in asset ownership, it is a widely used method of obtaining access to property, plant and equipment. At the beginning of this article sources of existence of...

We study the relationship between a firm's leverage deviation from target debt ratio and its leasing intensity. We find a significant negative relationship between the deviation of leverage from target and leasing intensity, implying that firms actively use leasing as a source of financing when...

Should a monopolistic vendor adopt the selling model or the leasing model for information goods or services? We study this question in the context of consumer valuation depreciation. Using a two-period game-theoretic model, we consider two types of consumer-side valuation depreciation for...

In this note, we show that the key driver of the 2019:Q1 increase in the leverage ratio appears to be a change in accounting rules – which requires the inclusion of operating leases as financial liabilities on U.S. corporations' balance sheets – and also provide a methodology for adjusting...

Leasing companies play a vital role in developing micro, medium and small scale industries. Bajaj Finance Limited is a leasing company which also makes contribution to economic development. Hence, maintaining liquidity and solvency position is very important to Bajaj Finance Limited. With this...

Measuring the performance of the lease and higher purchase financing company or institution is very important to know the company's position in the aspect of profitability. In this paper, the researchers made an attempt to find out the profitability of the private lease company by particularly...

We find a negative association between the leverage deviation and leasing intensity, implying that firms actively use leasing as a source of financing when faced with a leverage deviation. This negative relation is more pronounced for firms that are underleveraged, are financially constrained,...

Der Investitionsindikator signalisiert für das Jahr 2018 einen deutlichen Anstieg der Ausrüstungsinvestitionen von nominal 4,8%. Auch für das kommende Jahr ist mit Wachstum zu rechnen, wenn auch mit verminderter Dynamik.

Die neueste ifo Investitionsumfrage bei den deutschen Leasinggesellschaften zeigt, dass 2018 das Leasing insgesamt mit einem Zuwachs von nur 1,8% unterdurchschnittlich abgeschnitten hat. Das Neugeschäft mit Mobilien expandierte mit 1,5% auf 58,7 Mrd. Euro ungewöhnlich schwach, das...

Der Sammelband enthält gekürzte Fassungen von drei herausragenden Bachelor-Abschlussarbeiten, die im Jahr 2019 am Fachbereich Wirtschaftswissenschaften der Hochschule Düsseldorf eingereicht wurden. Obgleich durch die Bearbeitungszeit von 10 Wochen limitiert, enthalten die Arbeiten wertvolle...

What factors enhance investment efficiency in leased assets, and what incentives give rise to over-investments? If firms over-invest in leases, what economic consequences arise? We develop a model of expected investment in leased assets, and use the residuals from the model as proxies for...

This case study serves as tool to make international financial reporting come alive. The case repositions financial accounting in the audience’s perception as a core part of modern corporate governance.

Der Sammelband enthält gekürzte Fassungen von drei herausragenden Bachelor-Abschlussarbeiten, die im Jahr 2019 am Fachbereich Wirtschaftswissenschaften der Hochschule Düsseldorf eingereicht wurden. Obgleich durch die Bearbeitungszeit von 10 Wochen limitiert, enthalten die Arbeiten wertvolle...

We examine the real effects of lease capitalization rules (i.e., standards that require firms to capitalize finance leases) on corporate investment. We hypothesize that, in order to comply with these standards, managers collect, process, and disclose additional information, which leads them to...

This paper demonstrates a novel risk premium channel for firms' dynamic lease versus buy decision. In a typical operating lease contract, a less financially constrained lessor (capital owner) effectively provides an insurance mechanism to a more constrained lessee (capital borrower) against the...

I explore the effect of latent property characteristics on the estimation of the term structure of lease rates. Using data on Central London office leases, OLS specifications yield estimates of a significantly positive term structure, which is consistent with similar regressions documented in...

We extend Williamson's (1973, 1987) transaction economics research to leased assets to help explain why some assets are acquired by capital lease and the use of other assets is acquired by operating lease. We look for evidence that capital leases are used for higher asset specificity assets and...

This paper studies how the ease of repossessing collateral in bankruptcy affects corporate leasing policy. Using plausibly exogenous variation of the comparative advantages in the ability to repossess assets between leases and secured lending generated by anti-recharacterization laws, I find...

This paper presents an empirical analysis of the relation between energy factor markets, leasing structures, and the transaction prices of office buildings in the U.S. We employ a large sample of 15,133 office building transactions between 2001 and 2010. In addition to building characteristics,...

"This book presents chapters discussing theoretical and empirical approaches on the importance of the renting industry and sharing economy to help in the recovery of tourism, hospitality and service industries in a post-COVID-19 world."