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Singapore, Inc. Versus the Private Sector; Are Government-Linked Companies Different?

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  • Ling H Tan
  • Carlos D. Ramírez

Abstract

Government-linked companies (GLCs) have a significant presence in Singapore's corporate sector. Unlike parastatals in many other countries, these companies are run on a competitive, commercial basis, ostensibly without government privileges. Based on data from publicly listed GLCs and non-GLCs, we indeed find no evidence that GLCs have easier access to credit. However, we do find that being a GLC is rewarded in financial markets with a positive premium, over and above what can be explained by the usual determinants of Tobin's q.

Suggested Citation

  • Ling H Tan & Carlos D. Ramírez, 2003. "Singapore, Inc. Versus the Private Sector; Are Government-Linked Companies Different?," IMF Working Papers 03/156, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:03/156
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    References listed on IDEAS

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    8. Hirsch, Barry T & Seaks, Terry G, 1993. "Functional Form in Regression Models of Tobin's q," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 381-385, May.
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    Citations

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    Cited by:

    1. Reda Cherif & Fuad Hasanov, 2015. "The Leap of the Tiger; How Malaysia Can Escape the Middle-Income Trap," IMF Working Papers 15/131, International Monetary Fund.
    2. John Fernald & Brent Neiman, 2011. "Growth Accounting with Misallocation: Or, Doing Less with More in Singapore," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(2), pages 29-74, April.
    3. repec:wsi:serxxx:v:60:y:2015:i:03:n:s0217590815500320 is not listed on IDEAS
    4. Yong Sarah Zhou, 2013. "Explaining ASEAN-3’s Investment Puzzle A Tale of Two Sectors," IMF Working Papers 13/13, International Monetary Fund.
    5. Reda Cherif & Fuad Hasanov, 2014. "Soaring of the Gulf Falcons; Diversification in the GCC Oil Exporters in Seven Propositions," IMF Working Papers 14/177, International Monetary Fund.
    6. Nguyen, Thang V. & Le, Ngoc T.B. & Bryant, Scott E., 2013. "Sub-national institutions, firm strategies, and firm performance: A multilevel study of private manufacturing firms in Vietnam," Journal of World Business, Elsevier, vol. 48(1), pages 68-76.
    7. Congleton, Roger D. & Lee, Sanghack, 2009. "Efficient mercantilism? Revenue-maximizing monopoly policies as Ramsey taxation," European Journal of Political Economy, Elsevier, vol. 25(1), pages 102-114, March.

    More about this item

    Keywords

    Corporate finance; Private sector; Public enterprises; Singapore; investment spending; capital markets; capital stock; subsidiaries; private sector counterparts;

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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