TECHNICAL, SCALE AND MANAGERIAL EFFICIENCIES IN MALAYSIAN REITS: A NON-PARAMETRIC APPROACH

Authors

  • Nor Nazihah Chuweni Department of Built Environment Studies and Technology Faculty of Architecture, Planning and Surveying UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS
  • Siti Nadiah Mohd Ali Department of Built Environment Studies and Technology Faculty of Architecture, Planning and Surveying UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS
  • Nurul Sahida Fauzi Department of Built Environment Studies and Technology Faculty of Architecture, Planning and Surveying UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS
  • Nur Baizura Mohd Shukor Department of Built Environment Studies and Technology Faculty of Architecture, Planning and Surveying UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS

DOI:

https://doi.org/10.21837/pm.v19i17.996

Keywords:

Technical, Scale, Efficiency, Malaysian REITs

Abstract

The paper examined technical, managerial and scale efficiencies scores of Malaysian Real Estate Investment Trust (M-REITs). A non-parametric approach of VRS-DEA examined the input and output variables to determine REIT efficiency. We examined their determinants using GLS regression in the second stage. On average, the M-REIT industry has faced technical inefficiency, that involves scale and managerial inefficiencies. This paper presents new estimates through discussion on return as REIT output. The empirical results indicate Islamic REITs exhibited higher efficiency scores than their counterparts. The results from GLS regression analysis suggest that efficient REITs are smaller in size with higher concentration in property sector and geographical area. Having examined these values, there is still some catching-up for the inefficient REITs in the sample to be more competitive to stay relevant in the global market.

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References

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Published

2021-10-17

How to Cite

Chuweni, N. N., Mohd Ali, S. N., Fauzi, N. S., & Mohd Shukor, N. B. (2021). TECHNICAL, SCALE AND MANAGERIAL EFFICIENCIES IN MALAYSIAN REITS: A NON-PARAMETRIC APPROACH. PLANNING MALAYSIA, 19(17). https://doi.org/10.21837/pm.v19i17.996

Issue

Vol. 19 (2021): PLANNING MALAYSIA JOURNAL : Volume 19, Issue 3, 2021

Section

Article

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eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.

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