Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/219619
Title: SPONSOR OWNERSHIP IN SINGAPORE REITS
Authors: KOH THONG MENG
Keywords: Real Estate
Ooi Thian Leong Joseph
2011/2012 RE
Determinants
Firm value
Ownership
Real Estate Investment Trust
REIT
Singapore
Sponsor
Issue Date: 10-May-2012
Citation: KOH THONG MENG (2012-05-10). SPONSOR OWNERSHIP IN SINGAPORE REITS. ScholarBank@NUS Repository.
Abstract: Sponsors of Singapore REITs maintain a strong influence on their REITs under a captive situation, primarily through the control of their manager. As sponsors continue to hold shares within their REITs, significant importance lies in the investigation of sponsor ownership and its implications. The study addresses three research objectives, 1) To examine the distribution of sponsor ownership across Singapore REITs, 2) Investigate the determinants of sponsor ownership, and 3) Analyse the effect of sponsor ownership on firm value. The study examined that sponsor ownership across Singapore REITs are concentrated within the range of 20% to 45%, and are much higher than insider ownership of US REITs. Results show that firm size, earnings-per-share and capital expenditure are significant determinants of sponsor ownership. Using Tobin’s Q as a measure of firm value, the study investigated how different levels of sponsor ownership affect firm value according to the interest-alignment and tunnelling hypotheses. Initial estimations using correlation analysis, quadratic regression, piece-wise linear regression and two-stage-least-squares regression do not provide evidence for the inverted U-shaped relationship predicted by both hypotheses. However, estimating sponsor ownership against return-on-assets revealed a significant inverted U-shaped relationship. Therefore there is evidence to suggest that greater sponsor ownership initially results in higher accounting profits due to a better alignment of interests, but reduces accounting profits as sponsor ownership becomes excessive due to tunnelling activities by the sponsor.
URI: https://scholarbank.nus.edu.sg/handle/10635/219619
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Koh Thong Meng 2011-2012.pdf317.02 kBAdobe PDF

RESTRICTED

NoneLog In

Page view(s)

15
checked on Sep 29, 2022

Download(s)

7
checked on Sep 29, 2022

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.