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Economic value added (eva) as a performance measurement for glcs vs non-glcs: evidence from bursa malaysia

Author

Listed:
  • Ismail Issham
  • Abdul Samad M Fazilah
  • Yen Siew Hwa
  • Anton Abdulbasah Kamil
  • Azli Azli Ayub
  • Meor Azli Ayub

Abstract

EVA is a useful tool for assessing company performance. It combines factors, such as economy, accounting and market information in its assessment. This study employed EVA in an attempt to compare the companies' performances of GLCs (government-linked companies) and non-GLCs. Based on a 4-year pooled panel data of 37 GLCs and 208 non-GLCs, the results show that companies with government as their stakeholders tend to exhibit lower EVA scores than the companies without government stakeholders in Malaysia. Larger size companies were found to have lower EVA values. Companies which have both the characteristics - which are simultaneously large in size and government-owned, tend to be most adversely affected. Thus, any increment in the size of company for GLCs would decrease or destroy the value of the company, and to a greater degree, than companies without government holding.

Suggested Citation

  • Ismail Issham & Abdul Samad M Fazilah & Yen Siew Hwa & Anton Abdulbasah Kamil & Azli Azli Ayub & Meor Azli Ayub, 2008. "Economic value added (eva) as a performance measurement for glcs vs non-glcs: evidence from bursa malaysia," Prague Economic Papers, Prague University of Economics and Business, vol. 2008(2), pages 168-179.
    • Handle: RePEc:prg:jnlpep:v:2008:y:2008:i:2:id:328:p:168-179
    DOI: 10.18267/j.pep.328
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    References listed on IDEAS

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    1. Ha-Joon Chang & Ajit Singh, 1997. "POLICY ARENA: Can Large Firms Be Run Efficiently Without Being Bureaucratic?," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(6), pages 865-875.
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    More about this item

    Keywords

    economic value added (EVA); government-linked companies (GLCs); performance; size and performance tool;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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