Corporate governance : the case for Asian REITs

Abstract

At the entity level, the design of sound corporate governance mechanisms is critical for REITs that are preparing to go public. At the industry level, issues of transparency and corporate governance are consequential to the further development of REITs in Asia. This study looks at various REIT regimes and corporate governance systems around the world. It then proceeds to examine the governance structures in place at the time of an IPO in the emerging REIT market of Singapore. The mechanisms of corporate governance used to evaluate the IPO of the REIT include (i) board structure and composition, (ii) ownership, (iii) compensation, and (iv) takeover defenses. The findings point to evidence that corporate governance structures are not "one size fits all" and must be tailored to fit the appropriate institutional context.