Corporate Governance and Performance of Externally Managed Singapore REITs

Posted: 21 Mar 2013

See all articles by Patrick Lecomte

Patrick Lecomte

ESSEC Business School

Joseph T. L. Ooi

National University of Singapore (NUS) - Department of Real Estate

Date Written: March 19, 2013

Abstract

This paper employs a new scoring framework designed by the Asia Pacific Real Estate Association (APREA) to examine the link between corporate performance and quality of corporate governance among externally managed REITs listed on the Singapore Stock Exchange (S-REITs). The empirical tests provide evidence supporting positive correlation between corporate governance practices and stock performances. However, we find no positive correlation with operating performance proxied by accounting measures. In other words, S-REITS with higher corporate governance tend to register better risk-adjusted returns but do not outperform operationally. To test for market efficiency, the study show that S-REITs with the best corporate governance practices also have less information asymmetry.

Keywords: REITs, Corporate governance, Firm value, Performance

Suggested Citation

Lecomte, Patrick and Ooi, Joseph T. L., Corporate Governance and Performance of Externally Managed Singapore REITs (March 19, 2013). Journal of Real Estate Finance and Economics, Vol. 46, No. 4, 2013, Available at SSRN: https://ssrn.com/abstract=2235820

Patrick Lecomte (Contact Author)

ESSEC Business School ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France
+65 6884 9780 (Phone)

Joseph T. L. Ooi

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
856
PlumX Metrics