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

22 Pages Posted: 28 Jan 2006

See all articles by Carlos D. Ramirez

Carlos D. Ramirez

George Mason University - Department of Economics

Ling Hui Tan

International Monetary Fund (IMF) - European Department

Date Written: July 2003

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.

Keywords: public enterprises, corporate finance

JEL Classification: L32, L33, G32

Suggested Citation

Ramirez, Carlos D. and Tan, Ling Hui, Singapore, Inc. Versus the Private Sector: Are Government-Linked Companies Different? (July 2003). IMF Working Paper No. 03/156, Available at SSRN: https://ssrn.com/abstract=879232

Carlos D. Ramirez (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Enterprise Hall MSN 3G4
Fairfax, VA 22030
United States
703-993-1130 (Phone)
703-993-1133 (Fax)

Ling Hui Tan

International Monetary Fund (IMF) - European Department ( email )

700 19th St. NW
Washington, DC 20431
United States

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