Centrally administered state owned enterprises : a comparison between Singapore and China.

• Main Authors: Ching, Hew Wai., Chu, Hui Ee., Chua, Xin Yi.
• Other Authors: Cao Yong
• Format: Final Year Project
• Language: English
• Published: 2009
• Subjects: DRNTU::Business::Industries and labor
• Online Access: http://hdl.handle.net/10356/15257
• Institution: Nanyang Technological University

The establishment of government-linked corporations is a unique practice, and employed differently throughout nations. Diverse studies about the performance of such GLCs have also given rise to views for and against such firms. Hence, our report focuses on such GLCs in Singapore and China, two Asian countries whose GLCs have accounted for significantly in each country’s economic development, and are significant on their own in terms of key indicators such as size, market capitalization, and return on equity – in a bid to uncover differences among the corporate governance systems adopted in each country, as well as possible agency problems that may arise from these structures. Regressions and panel studies have been conducted to reveal the superiority in performance of Singapore GLCs over that of China’s, in terms of profit margin and ROE, and our report goes one step further to explore the relationship between the interaction of market forces and such GLCs, and the performance and agency problems arising due to the levels of interaction for each country. These findings would thus be helpful towards determining appropriate corporate governance structures countries can use, in accordance to profit-maximizing goals.