Conventional REITs, Islamic REITs and macroeconomic variables in Malaysia : a review
Joint Authors
Saqr, Mohd Adil Abd
Abu Sujak, Zahidah
Qamar al-Zaman, Nur al-Din
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 12, Issue 1 (30 Apr. 2020), pp.131-143, 13 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2020-04-30
Country of Publication
Malaysia
No. of Pages
13
Main Subjects
Financial and Accounting Sciences
Abstract EN
Purpose – The purpose of this paper is to empirically examine the return and dividend characteristics of two different types of Malaysian real estate investment trust (REIT) series, namely, conventional and Islamic, against macroeconomic variables over the period 2011-2017.
Design/methodology/approach – The required data are derived from Datastream database.
Multiple regression analysis is used to determine the impact of macroeconomic variables on financial performance of 13 Malaysian REIT series.
Findings – Results show that the macroeconomic variables are able to predict future returns and dividends of Malaysian REITs.
The analysis also suggests that Islamic REITs are seen to be less sensitive to macroeconomic variables and display better portfolio diversification benefits as compared to their conventional counterpart.
The ongoing implications for large-cap and small-cap REITs are also highlighted.
Research limitations/implications – The main limitation of the study is the small percentage of Islamic REITs sample due to limited period of observation available.
However, the two Islamic REITs included are representative of Islamic REITs in Malaysia as both of them are listed in the Bursa Malaysia with asset size and market capitalization values more than RM1bn.
Practical implications – The results of this study may serve as a useful input for financial market players on making strategic business decisions especially with regards to differences between conventional and Islamic REITs characteristics.
Originality/value – The main contribution of this paper is to explore the relationship between REITs and macroeconomic factors on a unique capital market (Malaysia) that allows comparison between conventional and its Islamic counterpart.-
American Psychological Association (APA)
Saqr, Mohd Adil Abd& Abu Sujak, Zahidah& Qamar al-Zaman, Nur al-Din. 2020. Conventional REITs, Islamic REITs and macroeconomic variables in Malaysia : a review. ISRA International Journal of Islamic Finance،Vol. 12, no. 1, pp.131-143.
https://search.emarefa.net/detail/BIM-1429331
Modern Language Association (MLA)
Saqr, Mohd Adil Abd…[et al.]. Conventional REITs, Islamic REITs and macroeconomic variables in Malaysia : a review. ISRA International Journal of Islamic Finance Vol. 12, no. 1 (2020), pp.131-143.
https://search.emarefa.net/detail/BIM-1429331
American Medical Association (AMA)
Saqr, Mohd Adil Abd& Abu Sujak, Zahidah& Qamar al-Zaman, Nur al-Din. Conventional REITs, Islamic REITs and macroeconomic variables in Malaysia : a review. ISRA International Journal of Islamic Finance. 2020. Vol. 12, no. 1, pp.131-143.
https://search.emarefa.net/detail/BIM-1429331
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 140-143
Record ID
BIM-1429331