The Study Of REITs Return On Investment Ssociated With Economic Factors

The investment of negotiable securities has already become a trend recently, butinstability in political situations and marcoeconomic factors make investors andincorporations become more conservative and find the better ones for investment little bylittle. According to the study of National Association of Real Estate Investment Trusts,Real Estate Investment Trusts has four advantages, such us stable revenue, higher dividendyield and tax reduction. Therefore, this research focuses on finding the factors whichinfluence the rate of return on REITs and the stocks which are categorized as REITs stocksin Taiwan's stock market.The aim of this paper is to examine the interaction betweenTaiwan Real Estate Investment Trusts (T-REITs) and financial variables. Being usuallyinfluenced by exogenous shocks or regime change in crucial economic or social events, thestructural breaks are a general problem in macroeconomic series. For examining the issueof whether regime changes have broken down the stability of the long-run relationshipsbetween T-REITs and financial variables, besides the traditional tests, the unit root testsallowing for a structural break, offered by Zivot and Andrews (1992),two structural breaks,offered by Lee and Strazicich (2003), the cointegration tests allowing for a structural break,offered by Gregory and Hansen (1996), and fully modified OLS, proposed by Hansen(2002), are used to execute the long run equilibrium relationship between the financialvariables and T-REITs.Real estate investment trust fund returns and factors in the economy has somerelevance, for example, by Taiwan belongs to island, and other regional trade frequently,therefore shares transfer market and many countries type of sex is extremely strong,especially in the United States for the most. This paper studies found that high oil prices, the rise of the raw material, high inflation and the us subprime housing, economic andpolitical issues of protests of events at home and abroad, the nations of the derivatives ofthe economic, financial event, real estate investment trust for Taiwan impact influence.