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

Author/Editor:

Ling H Tan ; Carlos D. Ramírez

Publication Date:

July 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 2003/156

Subject:

Asset and liability management Capital markets Currencies Economic sectors Financial institutions Financial markets Liquidity Manufacturing Money Stocks

English

Publication Date:

July 1, 2003

ISBN/ISSN:

9781451857429/1018-5941

Stock No:

WPIEA1562003

Pages:

21

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