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Assessing the Impact of Outbreaks on Malaysian Listed Property Companies in Mixed-Asset Portfolios

Author

Listed:
  • Razali Muhammad Najib

    (Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia)

  • Jalil Rohaya Abdul

    (Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia)

  • Shayuti Ahmad Faisal

    (Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia)

Abstract

This paper assesses the impact of outbreaks from the perspective of volatility of Malaysian Listed Property Companies in mixed-asset portfolios, concentrating on periods of time between outbreaks. The real issue of this study is the health crisis that has troubled institutional investors, as it has already significantly impacted the returns on investments. Investors need to be better informed on the impact of health outbreaks on investments in order to minimize their impact. To assess the impact of the outbreaks, the GARCH method has been employed to examine the dynamic volatility of listed property companies in mixed-asset portfolios. The volatility level will give investors better information from point of view of the dynamics of volatility of the Malaysian listed property companies’ performance within mixed-asset portfolios. The findings show that listed property companies demonstrate high volatility compared to other mixed-asset portfolios during the periods of outbreaks. This indicates Malaysian listed property companies were the most volatile investment in mixed-asset portfolios. This empirical study will contribute significantly to institutional investors, especially in terms of the investment decision-making process during outbreaks.

Suggested Citation

  • Razali Muhammad Najib & Jalil Rohaya Abdul & Shayuti Ahmad Faisal, 2021. "Assessing the Impact of Outbreaks on Malaysian Listed Property Companies in Mixed-Asset Portfolios," Real Estate Management and Valuation, Sciendo, vol. 29(3), pages 87-93, September.
    • Handle: RePEc:vrs:remava:v:29:y:2021:i:3:p:87-93:n:6
    DOI: 10.2478/remav-2021-0024
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    References listed on IDEAS

    as
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    2. J. Idier & T. Piquard, 2017. "Pandemic crises in financial systems: a simulation-model to complement stress-testing frameworks," Working papers 621, Banque de France.
    3. Kim Hiang Liow, 2008. "Extreme returns and value at risk in international securitized real estate markets," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 26(5), pages 418-446, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    outbreaks; Malaysia; listed property companies; mixed-assets; property portfolio;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

    Statistics

    Access and download statistics

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