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A Study on the relationship analysis between the K-REITs loaning rate and interest rate variables
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 Title & Authors
A Study on the relationship analysis between the K-REITs loaning rate and interest rate variables
Kim, Sang-Jin; Lee, Joo-Hyung;
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This study analyzed the long term relationship between the K-REITs` lending rate and interest rate variables based on ARDL (autoregressive distributed lag) and also examined the short term relationship based on the ARDL-ECM model. In the results of the empirical test, there is a co-integration relationship among the K-REITs` lending rate, 3 year government bond (rate), 3 year government bond (rate), corporation bond (rate) (AA-, 3year) and general fund loan rate. This means that the K-REITs` lending rate is related to the long term interest rate. The corporate general fund loan rate has a significant correlation with the K-REITs` lending rate in the long term relation and short term adjustment process. The establishment of a management plan by the REITs considering the trends in the corporate general fund loan rate in the decision making process for finance sector borrowings can be practically helpful for the K-REITs.
ARDL Model;K-REITs;loaning interest rate;long term interest rate;
 Cited by
1. KAREIT, 2016.03

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