Share price and performance: the empirical study on the Government-Link Companies (GLCS) in Malaysia / Muhammad Danial Mohd Nawawi

• Main Author: Mohd Nawawi, Muhammad Danial
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Government business enterprises; Stock price indexes. Stock quotations
• Online Access: https://ir.uitm.edu.my/id/eprint/104534/1/104534.pdf; https://ir.uitm.edu.my/id/eprint/104534/

There are massive factors that have been considered as critical constructs of the performance evaluation of the GLCs. In addition, besides the general performance, the shareholder is more interested in the share price. Although the GLCs holding around 36 percent of the market, however, it appears to be performing poorly due to a number of economic events such as recession and pandemic COVID-19. Thus, due to that fact, this study will provide some clear cut on how to assist GLCs in performing at the required level so that they can contribute to the share price. The primary goal of this study is to investigate the possible relationship between Malaysian government-linked enterprises' financial performances (independent variables) with the share price. This study examined the yearly financial statements of five (5) GLCs listed on Bursa Malaysia from 2001 to 2020. Share price is used as the dependent variable, whereas liquidity ratio (measured by current ratio), profitability ratio (measured by return on assets and return on equity) and leverage ratio (measured by debt-to-equity ratio) will be used as independent variables. The information for this study was gathered from internet sources such as Eikon Datastream. Following that, this study was analysed using descriptive statistics and the panel least square (PLS) method. The result of these studies found that the current ratio, return on assets, and debt-to-equity ratio all have a positive effect on the share price of GLCs. They do, however, have a negative effect on the return on equity ratio.