Are Malaysian government-linked companies (GLCs) creating value?

Yeng Wai Lau · Chue Qun Tong

112 citations0/0 files storedSunway Institutional Repository (Sunway University)

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Political Influence and Corporate Strategies State Capitalism and Financial Governance

Abstract

Government-linked companies (GLCs) play an important role in the development of the Malaysian economy. However, overall public perception of GLCs in Malaysia has been tainted by the poor performance of key players, namely Malaysia Airline System (MAS) and Proton Holdings Berhad. Results of prior studies on the extent to which government intervention affects a company?s performance are mixed. This study empirically assesses the impact of government intervention on firm value in the context of the Malaysian economy. Results of statistical analysis conducted on 15 GLCs over six years—i.e. 2000 to 2005—reveal a significant positive relationship between the degree of government ownership and firm value. In other words, this study has found that contrary to the adverse public perception of GLCs in Malaysia, government intervention improves firm value. Results of this study provide preliminary evidence on the effectiveness of the ownership and control structure of Malaysian GLCs in creating firm value. Such findings pave the way for future research on the extent to which the ownership and control structure of Malaysian GLCs can serve as a model for developing and third-world countries to emulate.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 112 citations exist upstream.

References

1994A Simple Approximation of Tobin's q 1998State versus Private Ownership 1996A Theory of Privatisation 1998The Financial and Operating Performance of Newly Privatized Firms: Evidence from Developing Countries 1986Privatisation: A Policy in Search of a Rationale 1980The Relative Efficiency of Public and Private Firms in a Competitive Environment: The Case of Canadian Railroads 2005Government ownership and the performance of government-linked companies: The case of Singapore 1997The Government as a Shareholder: A Case from the United States

Cited by

2018Do types of political connection affect firm performance differently?2020The impact of ownership structure on dividend policy of listed firms in Jordan 2015Risk management disclosure 2021The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia 2016Ownership Structure, Corporate Governance and Firm Performance 2011

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.