Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies
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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Scientific Press
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/60594/1/Vol%201_1_10.pdf |
| _version_ | 1825932220176531456 |
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| author | Ab Razak, Nazrul Hisyam Ahmad, Rubi Ahmed, Huson Joher Ali |
| author_facet | Ab Razak, Nazrul Hisyam Ahmad, Rubi Ahmed, Huson Joher Ali |
| author_sort | Ab Razak, Nazrul Hisyam |
| collection | UPM |
| description | 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. |
| first_indexed | 2024-03-06T09:38:38Z |
| format | Article |
| id | upm.eprints-60594 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:38:38Z |
| publishDate | 2011 |
| publisher | International Scientific Press |
| record_format | dspace |
| spelling | upm.eprints-605942018-06-07T08:45:54Z http://psasir.upm.edu.my/id/eprint/60594/ Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies Ab Razak, Nazrul Hisyam Ahmad, Rubi Ahmed, Huson Joher Ali 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. International Scientific Press 2011 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/60594/1/Vol%201_1_10.pdf Ab Razak, Nazrul Hisyam and Ahmad, Rubi and Ahmed, Huson Joher Ali (2011) Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies. Journal of Applied Finance & Banking, 1 (1). pp. 213-240. ISSN 1792-6580; ESSN: 1792-6599 https://www.scienpress.com/journal_focus.asp?main_id=56&Sub_id=IV&Issue=56 |
| spellingShingle | Ab Razak, Nazrul Hisyam Ahmad, Rubi Ahmed, Huson Joher Ali Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies |
| title | Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies |
| title_full | Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies |
| title_fullStr | Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies |
| title_full_unstemmed | Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies |
| title_short | Does government linked companies (GLCs) perform better than non-GLCs? evidence from Malaysian listed companies |
| title_sort | does government linked companies glcs perform better than non glcs evidence from malaysian listed companies |
| url | http://psasir.upm.edu.my/id/eprint/60594/1/Vol%201_1_10.pdf |
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