The convergent behavior in REIT markets

Tsai, I‐Chun; Lee, Cheng-feng

doi:10.1108/14635781211194791

Cited by 9 publications

(8 citation statements)

References 34 publications

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“…Meanwhile, another study by (I.-C. Tsai & Lee, 2012) found an interesting finding. By CIPS or Pesaran test method, this study found that the returns of Asian REITs markets (Singapore, Hong Kong, Malaysia, Thailand, Taiwan, and Korea) are more converged to the performance of US REITs market compared to Japan's market returns.…”

Section: Reits Performance Risk and Volatilitymentioning

confidence: 88%

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Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

Indrawan

Wahyuningsih

2019

ijief

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Real Estate Investment Trusts (REITs) as a new instrument in many capital markets is an interesting topic.Although not yet to be popular globally, REITs has gained popularity as flexible, cost efficient and profitable real estate investment vehicle for investors as well as provide liquidity for real estate sector, especially in advanced markets like in US, Japan and Singapore. The emergence of Islamic Financial Institutions (IFIs) coincided with increasing popularity of REITs open opportunity for development of Islamic REITs (I-REITs) as competitive but sharia compliant REITs compared to the conventional one. The dominance of Malaysia as market player of I-REITs as well as many underresearched areas open opportunity for betterment of the current I-REITs markets. This paper is a literature review with two objectives. First, to compile and review existing articles on REITs, both conventional and Islamic, and second, to gain lesson learned as material for development of I-REITs in Indonesia as ultimate goal. It is expected that this literature review will generate ideas for future development proposals on I-REITs, particularly in Indonesia. This study found that literature on I-REITs is relatively thin compared to its conventional counterparts, and Indonesia is still left behind in I-REITs development despite regulatory framework is already in force. Therefore, further effort to promote supply and demand of I-REITs in Indonesia should be taken as a way to diversify Islamic investment avenues for sharia oriented investors.

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Section: Reits Performance Risk and Volatilitymentioning

confidence: 88%

“…Some of studies are also comparing REITs in different jurisdictions(Alexander, Cheng, Rutherford, Springer, & Alexander, 2013;Alias & Y, 2011;Brobert, 2016;Ho, Addae-dapaah, & Peck, 2017; C. L Loo, Anuar, & Ramakrishnan, 2016;Mi, Benson, & Faff, 2016;. Olanrele, Said, & Daud, 2015;Seiler, Lee, & Seiler, 2003;I.-C. Tsai & Lee, 2012;I. Tsai, 2013; …”

mentioning

confidence: 99%

Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

Indrawan

Wahyuningsih

2019

ijief

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“…In the study ofGiliberto and Shulman (2017), the empirical finding shows a mix result on long run relationship between the interest rate and REIT stock return, but there is a short run relationship between interest rate and return of REIT. However, in the study of Tsai and Lee (2012) has a different finding on interest rate and REIT stock return, the empirical finding shows a long run relationship which againstfinding of Giliberto and Shulman (2017). According to Campbell and Ammer (1993), found that there is a negative correlation from short term interest rate, change in short rate and relative bill rate towards the stock return which means that interest rate is negatively influencing the stock return.…”

Section: Macroeconomic Variables and Stock Returnsmentioning

confidence: 93%

“…REIT in Asia introduced a little late compared to United State REITs sectors. The growth of REIT in Asia is rapid and significant over the two decades (Tsai & Lee, 2012). The expansion of REIT started in Asia in 2000s.…”

Section: Introductionmentioning

confidence: 99%

The Mirror of Malaysia Real Estate Investment Trust Stock Return in the Short-Run Dynamics

et.al¹

2021

TURCOMAT

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The formation of Islamic capital market under the subcomponent of Islamic financial system scratch a milestones development of Islamic finance in Malaysia. The Islamic capital market operates in mirror with convention capital market in expending, deepening and broadening Malaysia financial system. Malaysia is one of the REIT markets that value both the Islamic and conventional practices, such flexibility makes the attract not only to the local investor but also Islamic investors and foreign investor. The major source that generates income for REIT is the rental of the commercial real estate invested and hold as portfolio by the REIT management company. Furthermore, Malaysia REIT is known to be defensive stocks which consist of cyclic income producing assets that has some potential of asset appreciation. On the other hand, it witnessed by the moderation of Malaysia government bond yields created a lower pressure on the REIT stock price and analyst’s report highlighted the uncertainties on global crude oil prices and inflation is main concerned to REIT investors. In addition, the revision of 2019 tax system in Malaysia furnished a long run affected the dividend payout and volatility of REIT stock price. Therefore, this impact on the REIT stock liquidity and trading volume experiencing anil liquid trading. Therefore, the impact of external forces towards the mirror of two type of Malaysia REITs is significant to the investors, policy makers and government to outline the short-run relationship and facilitate future growth. The Vector auto regression model, granger causality and variance decomposition employed in this study to analyze the mirror of two types Malaysia REIT stock return. The empirical finding shows that the variability of dividend yield is vital explanatory variables to explain the both type of REIT stock return in Malaysia followed by interest rate for Islamic REIT stock return. The mirror of conventional REIT further implicated that trading volume and global crude oil price are useful to forecasting the changes in the stock return. Nutshell, this study provides a discussion of Malaysia REIT stock return behavior and it should be given necessary attention by researchers in ensuring the newly develop Islamic REIT are competitive and stability as the conventional REIT.

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“…Tsai and Lee (2012) put forward a similar convergence mechanism for Asian real estate investment trust (REIT) markets. It happens to converge toward the US REIT market although the underlying real estate securities in different countries are poorly related.…”

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confidence: 99%

Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market

Brière

Szafarz

2015

World Development

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This paper is the first to draw a global picture of worldwide microfinance equity by taking full advantage of daily quoted prices. We revisit previous findings showing that investors should consider microfinance as a self-standing sector. Our results are threefold. First, microfinance has become less risky and more closely correlated with the financial sector. This convergence is associated with a decline in the proportion of women borrowers. Second, microfinance and finance shares have equivalent currency exposure. Last, introducing a self-standing microfinance sector presents few diversification benefits. This paper confirms that microfinance has changed dramatically during the last decade.

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The convergent behavior in REIT markets

Cited by 9 publications

References 34 publications

Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

The Mirror of Malaysia Real Estate Investment Trust Stock Return in the Short-Run Dynamics

Does Commercial Microfinance Belong to the Financial Sector? Lessons from the Stock Market

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