The inflation-hedging properties of Turkish REITs

Date

2008-01-01

Author

Erol, Işıl
Tirtiroglu, Dogan

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This study empirically tests the inflation-hedging abilities of Turkish REITs in comparison to the indices of common stocks listed on the Istanbul Stock Exchange (ISE) over the period December 1999 to December 2004. Two main factors motivate this study. First, compared to their counterparts in developed capital markets, Turkish REITs have some important tax incentives as well as flexibility in managing their portfolios. Second, the Turkish economy provides a rare and good opportunity to test the hedging behaviour of real estate stocks in periods of both high- and moderate-inflation rates. The empirical results show that Turkish REITs, in general, provide a better hedge against both actual and expected inflation than do the ISE common stock indices. Dividing the entire sample period into the high- and moderate-inflation sub-periods, we find that the hedging ability of REITs is better under high inflation than under moderate inflation.

Subject Keywords

Economics and Econometrics

URI

https://hdl.handle.net/11511/57020

Journal

APPLIED ECONOMICS

DOI

https://doi.org/10.1080/00036840600970237

Collections

Department of Economics, Article

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Citation Formats

I. Erol and D. Tirtiroglu, “The inflation-hedging properties of Turkish REITs,” APPLIED ECONOMICS, pp. 2671–2696, 2008, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/57020.