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Does Government Ownership Matter? Comparative Study Between Glcs And Nglcs In Malaysia

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Listed:
  • IRENE WEI KIONG TING

    (College of Business Management and Accounting, Universiti Tenaga Nasional, Malaysia)

  • HOOI HOOI LEAN

    (Economics Program, School of Social Sciences, Universiti Sains Malaysia, Malaysia)

Abstract

This study investigates whether government participation in firm ownership leads to better firm performance of publicly listed companies in Malaysia. The sample covers 257 companies listed on the Bursa Malaysia from 1997 to 2009. Multiple regression models with balanced panel data are used to examine the impact of government ownership (GOVN) on firm performance. We find a negative relationship between GOVN and firm performance, a finding that supports the negative public perception of government-linked companies (GLCs) in Malaysia. We conclude that government ownership is not an effective tool for improvement of firm performance in Malaysia.

Suggested Citation

  • Irene Wei Kiong Ting & Hooi Hooi Lean, 2015. "Does Government Ownership Matter? Comparative Study Between Glcs And Nglcs In Malaysia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(02), pages 1-22.
    • Handle: RePEc:wsi:serxxx:v:60:y:2015:i:02:n:s0217590815500198
    DOI: 10.1142/S0217590815500198
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    References listed on IDEAS

    as
    1. Michael L. Lemmon & Karl V. Lins, 2003. "Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis," Journal of Finance, American Finance Association, vol. 58(4), pages 1445-1468, August.
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    Cited by:

    1. Bilal Asghar & Ahmad Wasim & Usama Qazi & Azfar Rasool, 2020. "Financial and Non-Financial Practices Driving Sustainable Firm Performance: Evidence from Banking Sector of Developing Countries," Sustainability, MDPI, vol. 12(15), pages 1-15, July.
    2. Nur Lyana Baharin & Beni Widarman Yus Kelana & Lim Sanny & Poh-Chuin Teo & Theresa C. F. Ho & Mohd Khairuddin Ramliy, 2023. "The Mediating Effect of Emotional Intelligence on the Relationship between Talent Management Practices and Leadership Skills in Malaysian GLCs," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    3. Wei-Kang Wang & Irene Wei Kiong Ting & Kuo-Cheng Kuo & Qian Long Kweh & Yan-Heng Lin, 2018. "Corporate diversification and efficiency: evidence from Taiwanese top 100 manufacturing firms," Operational Research, Springer, vol. 18(1), pages 187-203, April.
    4. Imen Tebourbi & Irene Wei Kiong Ting & Hanh Thi My Le & Qian Long Kweh, 2020. "R&D investment and future firm performance: The role of managerial overconfidence and government ownership," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1269-1281, October.

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    More about this item

    Keywords

    GLCs; NGLCs; government ownership; firm performance; public listed; Malaysia; G32; G38;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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