Abstract/Summary

This paper examines the impacts of corporate governance on the performance of externally managed REITs in Singapore from year 2008 to 2012 using Corporate Governance Index (CGI) designed by Asia Pacific Real Estate Association (APREA). This study employs the GMM method which is more robust compared to previous studies that used pooled OLS and panel data method. The results indicate that corporate governance has significant impacts on return on assets (ROA) and excess returns of REITs in Singapore even though REITs are in a highly regulated industry. The results further indicate that individual corporate governance attribute, REIT organization and ownership would influence and discount the value of REITs in Singapore. In addition, the findings also depict that the REIT board of directors would curtail and mitigate related party transactions which have significant impacts on excess return in REITs in Singapore.