Empirical Trend On Factors That Influence The Institutional Investors Towards Investing In Malaysia Real Estate Investment Trusts: A Preliminary Study

Norashfah Hanim Yaakop Yahaya Al-Haj, Hairulnizam Hashim


This study main objective is to identify the empirical evidence on factors that influence the involvement of institutional investors
towards Malaysia Real Estate Investment Trusts (M-REITs) over the period of 2002 – 2006. Firstly, the study examines the current level of
institutional investors’ participation in M-REITs over the period under studied. Secondly, the paper examines the preliminary pattern of
institutional investors’ participation and trading volume of M-REITs and consequently is to investigate the correlation between institutional
investors’ involvement in M-REITs with capital gains. Finally, the study considers whether institutional investors are influenced by the
average annual returns fluctuation of M-REITs. Evidence is provided to support previous literature of which better to explain best the
behavior of institutional investors’ towards M-REITs. Nevertheless, the result in this study sparks new curiosity on confirming the direction
of the market capitalization, returns, share turnover and level of institutional investors’ participation in a causality testing and to look into
bid-ask spread analysis in the future works. Another, potential implication to note is to consider longer period of study in respect to MREITs

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