Does government linked companies (GLCs) perform better than non-GLCs? Evidence from Malaysian listed companies

Razak, Nazrul Hisyam Ab, Ahmad, Rubi and Joher, Huson Aliahmed 2011, Does government linked companies (GLCs) perform better than non-GLCs? Evidence from Malaysian listed companies, Journal of applied finance & banking, vol. 1, no. 1, pp. 213-240.

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Title Does government linked companies (GLCs) perform better than non-GLCs? Evidence from Malaysian listed companies
Author(s) Razak, Nazrul Hisyam Ab
Ahmad, Rubi
Joher, Huson Aliahmed
Journal name Journal of applied finance & banking
Volume number 1
Issue number 1
Start page 213
End page 240
Total pages 28
Publisher International Scientific Press
Place of publication Athens, Greece
Publication date 2011-06
ISSN 1792-6580
1792-6599
Keyword(s) Government ownership
Government linked companies
corporate governance
Summary The purpose of this paper is to examine the impact of an alternative ownership/control structure of corporate governance on firm performance. Specifically, we investigated the governance system of government linked companied (GLCs) in Malaysia. In this paper, we examine governance mechanism and firm performance of Malaysian GLCs and non-GLCs over a 11 year period from 1995 to 2005. We only select a sample of companies which are listed in Main Board. We chose a sample of 210 firms. We used Tobin’s Q which is an indicator of market performance is used as a proxy for company’s performances; meanwhile ROA is used to determine accounting performance. This paper is to determines whether after controlling firm specific characteristics such as corporate governance, agency cost, growth, risk and profitability, GLCs perform better than non-GLCs. Findings highlight that non-GLCs performance is better GLCs in term of corporate governance, and other firm specific characteristics. The relationship between ownership structure and firm performance has been issue of interest among academics, investors and policy makers as one of key issues in understanding the effectiveness of alternative governance systems where government ownership serves as a control mechanism.
Language eng
Field of Research 140301 Cross-Sectional Analysis
Socio Economic Objective 910206 Market-Based Mechanisms
HERDC Research category C1 Refereed article in a scholarly journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30036703

Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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