EconPapers    
Economics at your fingertips  
 

The Performance of Government-Linked Companies in Malaysia

Mansor Isa and Siew-Peng Lee (leesp@utar.edu.my)
Additional contact information
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
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.mfa.com.my/wp-content/uploads/2013/12/CMR_20162_001.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mfa:journl:v:24:y:2016:i:2:p:1-13

Access Statistics for this article

Capital Markets Review is currently edited by Hooy Chee Wooi

More articles in Capital Markets Review from Malaysian Finance Association
Bibliographic data for series maintained by Capital Market Review (cmr.mfa@gmail.com).

 
Page updated 2022-06-18
Handle: RePEc:mfa:journl:v:24:y:2016:i:2:p:1-13