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dc.contributor.authorChung, R
dc.contributor.authorFung, S
dc.contributor.authorHung, SYK
dc.date.accessioned2017-05-03T14:56:53Z
dc.date.available2017-05-03T14:56:53Z
dc.date.issued2012
dc.date.modified2012-04-11T22:33:14Z
dc.identifier.issn0895-5638
dc.identifier.doi10.1007/s11146-010-9253-4
dc.identifier.urihttp://hdl.handle.net/10072/44447
dc.description.abstractThis study investigates the effect of institutional ownership on improving firm efficiency of equity Real Estate Investment Trusts (REITs), using a stochastic frontier approach. Firm inefficiency is estimated by comparing a benchmark Tobin's Q of a hypothetical value-maximizing firm to the firm's actual Q. We find that the average inefficiency of equity REITs is around 45.5%, and that institutional ownership can improve the firm's corporate governance, and hence reduce firm inefficiency. Moreover, we highlight the importance of heterogeneity in institutional investors-certain types of institutional investors such as long-term, active, and top-five institutional investors, and investment advisors are more effective institutional investors in reducing firm inefficiency; whereas hedge funds and pension funds seem to aggravate the problem. In sub-sample analysis, we find that these effective institutional investors can reduce inefficiency more effectively for distressed REITs, and for REITs with high information asymmetry, and with longer term lease contracts. Lastly, we find that the negative impact of institutional ownership (except for long-term institutional investors) on firm inefficiency reduces over time, possibly due to strengthened corporate governance and regulatory environment in the REIT industry.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.languageEnglish
dc.language.isoeng
dc.publisherSpringer New York LLC
dc.publisher.placeUnited States
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom171
dc.relation.ispartofpageto211
dc.relation.ispartofissue1
dc.relation.ispartofjournalJournal of Real Estate Finance and Economics
dc.relation.ispartofvolume45
dc.rights.retentionY
dc.subject.fieldofresearchApplied economics
dc.subject.fieldofresearchBanking, finance and investment
dc.subject.fieldofresearchBanking, finance and investment not elsewhere classified
dc.subject.fieldofresearchCommercial services
dc.subject.fieldofresearchcode3801
dc.subject.fieldofresearchcode3502
dc.subject.fieldofresearchcode350299
dc.subject.fieldofresearchcode3504
dc.titleInstitutional Investors and Firm Efficiency of Real Estate Investment Trusts
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.date.issued2010
gro.hasfulltextNo Full Text
gro.griffith.authorChung, Richard Yiu-Ming


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