Premium
THE IMPACT OF GOVERNMENT INVESTMENT ORGANIZATIONS IN MALAYSIA ON THE PERFORMANCE OF THEIR PORTFOLIO COMPANIES
Author(s) -
MUHAMED Amiruddin BIN,
STRÄTLING Rebecca,
SALAMA Aly
Publication year - 2014
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/apce.12047
Subject(s) - government (linguistics) , business , investment (military) , portfolio , control (management) , welfare economics , finance , public administration , political science , business administration , management , economics , politics , law , philosophy , linguistics
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 organizations. 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 organization 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 organizations under federal government control tend to outperform firms controlled by regional governments’ investment organizations.