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


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


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.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: International Scientific Press
Keywords: Government ownership; Government linked companies; Corporate governance
Depositing User: Nabilah Mustapa
Date Deposited: 07 Jun 2018 08:45
Last Modified: 07 Jun 2018 08:45
URI: http://psasir.upm.edu.my/id/eprint/60594
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