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Firm Size, Ownership and Performance in the Malaysian Palm Oil Industry

Author

Listed:
  • Bala Ramasamy

    () (Nottingham University Business School, Malaysia Campus, Jalan Broga, Semenyih, Selangor, Malaysia)

  • Darry Ong

    (Nottingham University Business School, Malaysia Campus, Jalan Broga, Semenyih, Selangor, Malaysia)

  • Matthew C. H. Yeung

    (School of Business, The Open University of Hong Kong, 30 Good Shepherd Street, Homantin, Kowloon, Hong Kong)

Abstract

The objective of this study is to analyse the effects of market structure components and other performance measures to better understand the dynamics and determinants of performance within the Malaysian palm oil sector. In particular, we consider the effects of firm size and firm ownership on the level of profitability in this sector. Our findings suggest that size is negatively related to performance while privately owned plantation companies are more profitably managed. These results support the recent move by the Malaysian government to postpone the listing of the Federal Land Development Authority (FELDA), a government agency responsible for managing government land schemes and commercial development of plantations. It also lends support to the ongoing strategy of improving the performance of Government Linked Corporations (GLC) in Malaysia.

Suggested Citation

  • Bala Ramasamy & Darry Ong & Matthew C. H. Yeung, 2005. "Firm Size, Ownership and Performance in the Malaysian Palm Oil Industry," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 1(1), pages 81-104.
  • Handle: RePEc:usm:journl:aamjaf00101_81-104
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    File URL: http://web.usm.my/journal/aamjaf/vol1/1-5.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ajay Thapa, 2015. "Determinants of microenterprise performance in Nepal," Small Business Economics, Springer, vol. 45(3), pages 581-594, October.
    2. repec:spd:journl:v:68:y:2018:i:1:p:43-58 is not listed on IDEAS
    3. Iuliana Oana MIHAI, 2013. "The Influence of Corporate Governance and Ownership Concentration on Company Performance - Evidence from Bucharest Stock Exchange," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 79-88.
    4. repec:spr:manint:v:55:y:2015:i:3:d:10.1007_s11575-014-0227-2 is not listed on IDEAS

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    Keywords

    Malaysia; palm oil; privatisation; performance;

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