Foreign Ownership And The Performance Of Public Listed Companies In Malaysia
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Date
2008-05
Authors
See Lene, Low
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Abstract
This research paper is aimed at examining the effect of foreign ownership on
the financial and market performance of the companies listed on KLSE main board
during 2001 to 2006. Comparison of financial and market performance has been
assessed between the foreign-owned and locally owned companies. Relationship
between firm specific characteristic such as firm ownership, firm foreign ownership
percentage, firm size, firm risk, firm industry type and firms' performance is
examined. Data is retrieved from companies' annual report. t-statistic test and fixedeffect
regression method are employed in this study. Foreign-owned firms
performed better than locally-owned firms except managing expenses. The results
hold even when firm specific characteristics come into place and foreign ownership
is found to have statistically significant and positively impacted firms' performance.
Hence, it might be practically imperative for domestic firms to adopt similar
business strategy as foreign-owned firms in order to be more competitive.
Description
Keywords
Foreign Ownership , Public Listed Companies