The performance of externally managed REITs in Asia

Chong, W. L., Ting, K. H. and Cheng, F. F. (2017) The performance of externally managed REITs in Asia. Journal of Property Investment & Finance, 35 (2). pp. 200-227. ISSN 1463-578X doi: 10.1108/JPIF-08-2016-0067

Abstract/Summary

This paper examines the impact of free cash flow on the agency costs and how these free cash flow and agency costs affect the performance of REITs in Asia. Unlike previous studies that focus on conventional non-regulated industry, the Asian REIT industry being a highly regulated industry provides a new context for further research. The results indicate that free cash flow and agency costs persist over time in Asian REITs even though REITs are in a highly regulated industry. The findings also imply that REIT managers face substantial costs when they wish to adjust to the equilibrium level of agency costs, whereby the optimum level is always dynamic and not constant over time and moves with the changes in the determinants of agency costs. These agency costs persist over time and have significant impacts on the performance of REITs in Asia.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/69795
Identification Number/DOI	10.1108/JPIF-08-2016-0067
Refereed	Yes
Divisions	Henley Business School > Real Estate and Planning University of Reading Malaysia
Publisher	Emerald Group Publishing Limited
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