IDEAS home Printed from https://ideas.repec.org/a/taf/rjelxx/v25y2017i1p107-139.html
   My bibliography  Save this article

How Efficient are Alternative Financial Institutions? An Empirical Investigation of Islamic REITs in Malaysia

Author

Listed:
  • Nor Nazihah Chuweni
  • Chris Eves
  • Viet-Ngu Hoang
  • Ihsan Isik
  • M. Kabir Hassan

Abstract

The literature shows that despite Sharia-compliant restrictions, Islamic real estate investment trusts (REITs) exhibit higher financial returns than conventional trusts. However, efficiency analysis that directly assesses the effect of Sharia-compliant is lacking. This paper provides the first such analysis of Malaysian REITs from 2007 to 2015. The findings show that Malaysian REITs can reduce their inputs consumption by 35.8% without reducing outputs, implying a significant potential for improvement. Nevertheless Islamic REITs achieve higher efficiency levels than conventional REITs, indicating that the Sharia-compliant effect is positive. The findings suggest that REITs can increase efficiency through good governance, capitalization, and diversification.

Suggested Citation

  • Nor Nazihah Chuweni & Chris Eves & Viet-Ngu Hoang & Ihsan Isik & M. Kabir Hassan, 2017. "How Efficient are Alternative Financial Institutions? An Empirical Investigation of Islamic REITs in Malaysia," Journal of Real Estate Literature, Taylor & Francis Journals, vol. 25(1), pages 107-139, January.
    • Handle: RePEc:taf:rjelxx:v:25:y:2017:i:1:p:107-139
    DOI: 10.1080/10835547.2017.12090444
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2017.12090444
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2017.12090444?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjelxx:v:25:y:2017:i:1:p:107-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjel20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.