Integration of Islamic real estate investment trusts in Malaysia: is it an issue for investors?
Various stakeholders and academicians have shown their interest in the study of capital market instruments such as stock market, bond and real estate investment trust (REITs). As such, there rises a need to review the importance of capital markets integration. This study took a closer look at the...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
School of Social, Development and Environmental Studies, Faculty of Social Science and Humanities, Universiti Kebangsaan Malaysia
2016
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| Online Access: | http://journalarticle.ukm.my/10326/ http://journalarticle.ukm.my/10326/ http://journalarticle.ukm.my/10326/1/7x.full-geo-mei16-mohdyahya-edam.pdf |
| Summary: | Various stakeholders and academicians have shown their interest in the study of capital market instruments such as
stock market, bond and real estate investment trust (REITs). As such, there rises a need to review the importance of
capital markets integration. This study took a closer look at the co-integration between Islamic real estate
investment trust counters in Malaysia by applying the Vector Auto Regression (VAR) method. Data were generated
by processing monthly data from January 2007 to December 2013 obtained from authorized sources. The findings
indicated that there was no long-run or equilibrium relationship between the Islamic al-Aqar, al-Hadharah and
Axis counters. Based on the results, it can be concluded that the Islamic REIT companies in Malaysia do not
integrate each other in the long run. This will create opportunity for investors to diversify their investment portfolios
in Malaysia. As seen from the Granger causality view, the Hadharah and Axis returns were driven by al-Aqar
returns in the short run. |
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