IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2008y2008i2id328p168-179.html
   My bibliography  Save this article

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, University of Economics, Prague, vol. 2008(2), pages 168-179.
  • Handle: RePEc:prg:jnlpep:v:2008:y:2008:i:2:id:328:p:168-179
    as

    Download full text from publisher

    File URL: http://www.vse.cz/polek/download.php?jnl=pep&pdf=328.pdf
    Download Restriction: free of charge

    File URL: http://www.vse.cz/pep/328
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2008:y:2008:i:2:id:328:p:168-179. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky). General contact details of provider: http://edirc.repec.org/data/uevsecz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.