An Evaluation of Corporate Governance Characteristics and Corporate Performance between Government-Linked Companies (GLCs) in Malaysia and Singapore: A Panel Data Analysis

Abstract

This research seeks to investigate whether corporate governance contributes to the Government-link public listed companies’ performance in Malaysia and Singapore. A sample consisting of 20 Malaysian Government-linked public listed companies and 20 Singaporean Government-linked public listed companies were selected. The research timeframe covers from 2012 to 2017. Findings revealed that except for board meetings and independent directors, 4 other independent variables were statistically significant in affecting the Malaysian and Singaporean government-link public listed companies’ performance. Directors’ ownership had a significant negative impact on ROA and ROE in Malaysia but had no impact in Singapore. Board meetings and independent directors had no impact towards firm performance in both countries. Board size had positive and significant impact on ROE in Singapore. Number of women directors was significantly negatively related to Tobin’s Q, ROA and ROE. Leverage level was significantly negatively related to all firm performance’s measures in Malaysia, while only significantly related to Tobin’s Q in Singapore.