Singapore, Inc. Versus the Private Sector: Are Government-Linked Companies Different?
IMF Working Papers, July 1, 2003
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- Singapore, Inc. Versus the Private Sector: Are Government-Linked Companies Different?
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Bibliographic details
- Authors: Ling Hui Tan, Carlos D. Ramírez
- Published: July 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451857429.001
Summary and main findings
- Government-linked companies (GLCs) have a significant presence in Singapore's corporate sector and are run on a competitive, commercial basis, ostensibly without government privileges.
- Based on data from publicly listed GLCs and non-GLCs:
- No evidence that GLCs have easier access to credit.
- 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.
Subjects and keywords
- Subject areas: Asset and liability management; Capital markets; Currencies; Economic sectors; Financial institutions; Financial markets; Liquidity; Manufacturing; Money; Stocks
- Keywords: a number of enterprise; Asia and Pacific; Capital markets; company; company credibility; corporate finance; Currencies; GLC cash flow coefficient; government company; Liquidity; Manufacturing; market value; paper Co; private sector; public enterprises; Singaporean GLCs; Stocks; WP
Implications and analytical emphasis
- Analytical emphasis: comparison of publicly listed GLCs versus non-GLCs with respect to credit access and market valuation (Tobin's q determinants).
- Implication: Market valuation incorporates a positive premium for GLC status that is not explained by conventional determinants of Tobin's q, despite lack of evidence for preferential credit access.
IMF Working Paper — Ling Hui Tan and Carlos D. Ramírez, "Singapore, Inc. Versus the Private Sector: Are Government-Linked Companies Different?", Working Paper No. 2003/156, July 1, 2003.
Content in this bundle
- Singapore, Inc. Versus the Private Sector: Are Government-Linked Companies Different? - WP/03/156