Technical efficiency of Islamic equity capital market: Empirical evidence from Malaysian Islamic REITs

Chuweni, Nor Nazihah, Eves, Chris, Isik, Ihsan, & Hassan, Mohammad Kabir (2016) Technical efficiency of Islamic equity capital market: Empirical evidence from Malaysian Islamic REITs. In The 1st International Conference on Islamic Banking and Finance (ICIBF 2016), 6-8 March 2016, Umm Al-Qura University, Makkah. (Unpublished)

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Abstract

The paper examines the technical efficiency of the newly emerged Islamic equity capital market institutions in Malaysia, particularly by drawing on the experience of Malaysian Islamic Real Estate Investment Trusts (REITs) between 2010 and 2014. Our non-parametric approach of Variable Return to Scale Data Envelopment Analysis (VRS-DEA) results suggest that pure technical inefficiency has greater attribute towards the source of inefficiency for Malaysian Islamic REITs during the period of study. The inefficient REITs could enhance their efficiency gains through better handling and utilisation of the input resources. Islamic REITs also exhibit persistent optimum return to scale, with higher percentage of Malaysian Islamic REITs operating at constant return to scale compared to conventional REITs, implying that the Sharia guidelines and requirements which limit their investment universe did not hinder their scale efficiency.

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ID Code: 95657
Item Type: Conference Paper
Refereed: Yes
Additional URLs:
Keywords: Data Envelopment Analysis, Efficiency, Islamic REITs, Malaysia
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2016 [please consult the authors]
Deposited On: 20 May 2016 04:33
Last Modified: 22 May 2016 05:35

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