The impact of government investment organisations in Malaysia on the performance of their portfolio companies

Bin Muhammed, A.; Stratling, R.; Salama, A.

Abstract

Research into the impact of government ownership on the financial performance of listed companies typically assumes the government to be a monolithic entity and fails to consider that government ownership rights are administered by different types of government organisations. Exploring the financial performance of government controlled listed companies we find that in Malaysia the impact of government ownership varies depending on the type of organisation, which manages the government’s ownership stakes. Taking into account golden share provisions as well as the presence of senior civil servants and of politicians on boards of directors, we find that firms controlled by investment organisations under federal government control tend to outperform firms controlled by regional governments’ investment organisations.

Citation

Bin Muhammed, A., Stratling, R., & Salama, A. (2014). The impact of government investment organisations in Malaysia on the performance of their portfolio companies. Annals of Public and Cooperative Economics, 85(3), 453-473. https://doi.org/10.1111/apce.12047

• Journal Article Type: Article
• Online Publication Date: Aug 8, 2014
• Publication Date: Sep 1, 2014
• Deposit Date: Jun 5, 2014
• Publicly Available Date: Aug 8, 2016
• Journal: Annals of Public and Cooperative Economics
• Print ISSN: 1370-4788
• Electronic ISSN: 1467-8292
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 85
• Issue: 3
• Pages: 453-473
• DOI: https://doi.org/10.1111/apce.12047
• Public URL: https://durham-repository.worktribe.com/output/1425900
• Publisher URL: http://onlinelibrary.wiley.com/doi/10.1111/apce.12047/abstract