Do firms lease to hedge? CEO risk‐taking and operating lease intensity

Devos, Erik; Li, He

doi:10.1111/eufm.12282

Cited by 7 publications

(2 citation statements)

References 58 publications

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“…In an extensive review Spencer and Webb (2015) found that firm use operating leases to maintain capital and manage the firm costs. With that, several scholars found that operating leases are often become the significant off‐balanced sheet items and one of the main sources of corporate financing (Devos & Li, 2020; Dhaliwal et al., 2011). One of the main critics regarding operating lease, is that part of the reasons for using operating leasing, in large scales, is that it improves reported financial ratios.…”

Section: Literature Reviewmentioning

confidence: 99%

Renting risk and expected stock returns in memory of Simon Benninga

Taussig

Klein

2021

J Corp Accounting Finance

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The holy grail of finance researchers and practitioners is to fully understand and explain the behavior of stock returns. The current study offers a new source of risk, which relates to firms' renting expenses. A major topic in finance and economics is whether to rent or own an asset. Specifically, this is interesting for businesses. This study uniquely analyzes a sample of 178,837 US firm‐year observations from 1963 to 2019. This analysis shows that a risk characteristic—the Ratio of Renting expenses To Assets (RORTA)—explains the cross‐section of stock returns. A higher RORTA explains higher expected stock returns. Interestingly, when analyzing only the past decade for robustness, the RORTA is the only characteristic which remains significant when controlling for Size and Book‐to‐Market. That is, Size and Book‐to‐Market are insignificant in the last decade.

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Section: Literature Reviewmentioning

confidence: 99%

Renting risk and expected stock returns in memory of Simon Benninga

Taussig

Klein

2021

J Corp Accounting Finance

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“…According to WoS, the oldest article is paper (Baumel and Wallize, 1972) dedicated to the economic justification of choice between leasing and acquisition in the financial management of companies. The newest one is paper (Devos and Li, 2020). The author of this paper investigated whether management of firms recognizes hedging opportunities of operating leases by examining the relationship between chief executive officer risk-taking incentives and the use of operating leases.…”

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confidence: 99%

Innovation in Leasing and Leasing of Innovation: A Meta-Analysis

Zeynalov

2020

MMI

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The paper deals with the analysis of the approaches in defining the main research directions in the field of leasing of innovations and innovations in leasing. Developing the Internet and expansion of mobile Internet, the advent of the Internet of Devices, Fintech, Insurtech, and the development of sharing economy provokes many debates about the future of innovation within the asset finance and innovation in the leasing of assets. This paper aimed to determine the scientific publication tendencies in the field investigating the issues on leasing of innovations and innovations in leasing to identifying prospective research areas. The methodological instruments of this paper are bibliographic tool VOSviewer, Scopus, and Web of Science (WoS) databases. The study sample is 2513 scientific documents, published in the scientific journals indexed by Scopus (1915 documents) and WoS (598 documents) databases. The study has no limited time sample. The obtained results by Scopus and WoS tools showed the growing publication tendencies on the investigated issues. Besides, the number of papers in the Scopus database had a growing tendency with a variable rate. There is a significant increase in the number of papers that occurred from 2000 to 2010. In turn, the number of papers in journals indexed by WoS had been regularly rising during the analyzed period with a growth rate of 19,9%. Thus, this database shows a considerable growth of publications from 2010 to 2019. In 2019 the number of articles in the field of leasing of innovations and innovations in leasing increased by 412% compared to 2010. Therefore, the investigated issues remain popular in investigations of the great string of scientists. In the Scopus database, mostly the issues on leasing of innovations and innovations in leasing were investigated under the subject area as follows: Medicine, Engineering, Social Sciences, Environmental Science, Business, Management and Accounting, Computer Science. The author noted that the most significant part of the scientists who analyzed the leasing of the innovations and innovations in leasing was from the USA, China, United Kingdom, and Germany. Herewith, in 2019, the number of papers devoted to investigated issues enhanced in scientific journals with high impact factors such as Land Use Policy, European Journal of Operational Research, Ecology and Society. Therefore, it indicates that investigated issues are actually in the trends of sharing economy. The obtained results by VOSviewer analysis allowed identifying six clusters of the scientific publications scrutinized the leasing of the innovations and innovations in leasing from different perspectives. It worth mentioning that three out of six clusters have a close connection. The first biggest cluster links the keywords as follows: sustainable development, environmental impact, environmental protection, energy policy, land use, land management, fishery management, laws and legislation, risk assessment, etc. In turn, the second cluster indicated on the investigations in the sphere of information system and software in leasing. Three clusters (the third, fourth and fifth) are connected by the words «leasing – legal aspect – health care/medical practice management – hospital equipment/hospital information system», etc. The keywords such as financial management, taxes, capital financing, leasing – property, capital expenditure, accounting, legal aspect, management, and tax connected them with the sixth cluster. Keywords: innovation, leasing, leasing management, innovation in leasing.

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Operating Lease as Alternative Financing for REITs: a Viable Strategy or a Sign of Trouble?

Devos

et al. 2021

J Real Estate Finan Econ

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Do firms lease to hedge? CEO risk‐taking and operating lease intensity

Cited by 7 publications

References 58 publications

Renting risk and expected stock returns in memory of Simon Benninga

Renting risk and expected stock returns in memory of Simon Benninga

Innovation in Leasing and Leasing of Innovation: A Meta-Analysis

Operating Lease as Alternative Financing for REITs: a Viable Strategy or a Sign of Trouble?

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