文章基本信息

标题：An Investigation of the Moderating Effect of Liquidity on the Relationship between Debt and Financial Performance of REITs in Malaysia: An Optimal Liquidity Estimation
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作者：Zalina Zainudin ; Mazhar Hallak Kantakji ; Omer Bin Thabet 等
期刊名称：Contemporary Economics
印刷版ISSN：2084-0845
出版年度：2019
卷号：13
期号：3
页码：225-238
DOI：10.5709/ce.1897-9254.309
出版社：University of Finance and Management, Warsaw
摘要：Numerous studies on Real Estate Investment Trusts (REITs) have claimed that the high dividendpayout requirement has constrained the ability of REITs to use internal earnings and that they haveto rely on debt financing to support their funding requirements. However, there is also some empiricalevidence showing that the use of debt by REITs has adverse effects on the financial performanceof REITs. To reconcile the empirical evidence that is obtained from the REITs literature, thisstudy aims to empirically examine how and to what extent the effects of debt on financial performanceare contingent on other factors. In this regard, liquidity is hypothesized to moderate therelationship between debt and financial performance and this study will simultaneously estimatethe optimal liquidity level that could optimize the financial performance of REITs. The sample forthe study consists of all MREITs for the time period from 2005-2016. The study applies the continuoussequential breakpoint threshold regression model specifications of WarpPLS 5.0 (Bai & Perron,2003; Kock, 2015; Hansen, 2001; Perron, 2006) to analyze the moderating effects of liquidity and theoptimal liquidity level on the debt-financial performance relationship, respectively. The findings revealthat the correlation between financial performance and debt is conditioned by liquidity whilepreserving a certain level of liquidity is negatively related to the debt and financial performancerelationship. Thus, an appropriate level of liquidity needs to be maintained to attain the optimallevel of liquidity and to optimize financial performance. It is found that each MREITs needs a liquiditylevel of more than 5.78% of its total net assets to optimize its financial performance. The findingsoffer a useful guide for MREITs to manage their optimal liquidity level.
关键词：Debt; Financial Performance; Liquidity; Optimal; REITs