Singapore, Inc. Versus the Private Sector: Are Government-Linked Companies Different?
July 1, 2003
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Summary
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.
Subject: 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
Pages:
21
Volume:
2003
DOI:
Issue:
156
Series:
Working Paper No. 2003/156
Stock No:
WPIEA1562003
ISBN:
9781451857429
ISSN:
1018-5941
