Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/219618
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dc.titleA PERFORMANCE AND RISK ANALYSIS OF SHARIAH-COMPLIANT REITS
dc.contributor.authorLIM WEE CHUAN LEONARD
dc.date.accessioned2012-05-21T07:47:22Z
dc.date.accessioned2022-04-22T15:37:38Z
dc.date.available2019-09-26T14:13:50Z
dc.date.available2022-04-22T15:37:38Z
dc.date.issued2012-05-21
dc.identifier.citationLIM WEE CHUAN LEONARD (2012-05-21). A PERFORMANCE AND RISK ANALYSIS OF SHARIAH-COMPLIANT REITS. ScholarBank@NUS Repository.
dc.identifier.urihttps://scholarbank.nus.edu.sg/handle/10635/219618
dc.description.abstractThe main motivation of this study aims to examine 1) the returns and risk behaviour of Shariah-compliant REITs relative to conventional REITs and 2) the effects of a REIT’s performance and risk characteristics after adopting Shariah compliance. The first part is achieved by assessing the returns and risk-adjusted performance of the Shariah-compliant REITs from August 2006 – January 2012. In the second part, the event-study methodology is applied to observe for abnormal returns around the reclassification announcement date. The pre- and post-reclassification performance and risk behaviour of Axis-REIT is also analysed to determine if the effects are attributed to the conversion. Islamic M-REITs outperformed conventional M-REITs over the entire sampled period, with underperformance seen only during the pre-GFC phase. However, paired sample t-tests indicated that these differences were statistically insignificant. The robustness of Islamic M-REITs relative to conventional M-REITs is accentuated during the GFC phase. On a risk basis, Islamic M-REITs were riskier compared to its conventional counterparts, although in Singapore’s context, Sabana Shari’ah Compliant REIT was less risky compared to conventional industrial S-REITs and the overall REIT index. An uptrend trend of the aggregated abnormal returns is seen after Axis-REIT’s reclassification announcement, signifying market anticipation of greater shareholder wealth as a result of this conversion. Although conversion to a Shariah-compliant REIT yields better performance, it is statistically insignificant. Furthermore, a comparison of the pre- and post-conversion beta coefficient suggests that reclassification to a Shariah-compliant REIT decreases a REIT’s systematic risk. These preliminary findings may incentivize conventional REITs to explore conversion to a Shariah-compliant REIT.
dc.language.isoen
dc.sourcehttps://lib.sde.nus.edu.sg/dspace/handle/sde/1938
dc.subjectReal Estate
dc.subjectOng Seow Eng
dc.subject2011/2012 RE
dc.subjectEvent-study methodology
dc.subjectIslamic
dc.subjectREITs
dc.subjectShariah-compliant
dc.typeDissertation
dc.contributor.departmentREAL ESTATE
dc.contributor.supervisorONG SEOW ENG
dc.description.degreeBachelor's
dc.description.degreeconferredBACHELOR OF SCIENCE (REAL ESTATE)
dc.embargo.terms2012-06-01
Appears in Collections:Bachelor's Theses

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