Accessibility navigation

Sponsor ownership in Asian REITs

Tang, C. K. and Mori, M. (2017) Sponsor ownership in Asian REITs. The Journal of Real Estate Finance and Economics, 55 (3). pp. 265-287. ISSN 0895-5638

Text - Accepted Version
· Please see our End User Agreement before downloading.


It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1007/s11146-016-9577-9


This study examines the relationship between sponsor ownership and firm performance proxied by firm value, operating cash flow, and dividend policy with Asian real estate investment trusts (REITs) in Japan, Hong Kong, Malaysia, and Singapore for the period from 2002 to 2012, focusing on both the incentive alignment effect and the entrenchment effect. Our study sheds new light on effective corporate governance for Asian REITs that are prone to agency problems. Such agency problems arise from the inequitable distribution of power to sponsors that results from the external management structure. The findings suggest that larger sponsor ownership aligns the interests of sponsors and minority shareholders and enhances the performance of Asian REITs, while such an effect diminishes as sponsors become more entrenched. We find that the incentive alignment effect and entrenchment effect are primarily driven by developer-sponsored REITs. Also evident is that the presence of institutional investors mitigates agency problems and increases firm performance.

Item Type:Article
Divisions:Henley Business School > Real Estate and Planning
ID Code:79258


Downloads per month over past year

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation