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.
Original language | English (US) |
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Pages (from-to) | 109-139 |
Number of pages | 31 |
Journal | Journal of Real Estate Literature |
Volume | 25 |
Issue number | 1 |
State | Published - 2017 |
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting (miscellaneous)
- Economics, Econometrics and Finance (miscellaneous)
- Finance
- Urban Studies