The Performance of Government-Linked Companies in Malaysia
Mansor Isa and
Siew-Peng Lee (leesp@utar.edu.my)
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Mansor Isa: Universiti Malaya
Siew-Peng Lee: Universiti Tunku Abdul Rahman
Capital Markets Review, 2016, vol. 24, issue 2, 1-13
Abstract:
This study examines the performance of selected government-linked companies (GLCs) versus non-GLC matching firms, during the period 2008-2013. Our sample of GLCs is drawn from the list contained in the GLC Transformation Program of the Government of Malaysia. Three performance measures are used – ROA, ROE and Tobin’s Q ratio. Two methods of analysis are performed: univariate analysis and multiple regressions. The results strongly indicate that GLCs perform worse than their non-GLC counterparts in all performance measures and in both univariate and multivariate tests. The performance of both GLCs and non-GLCs is found to be negatively related to leverage and board size. Further, non-GLCs performance is also found to be related to firm size and non-duality.
Keywords: Government-linked companies; firm performance; corporate governance; returns on asset; return on equity; Tobin’s Q ratio. (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:mfa:journl:v:24:y:2016:i:2:p:1-13
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