• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
IJTEF 2013 Vol.4(4): 177-181 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2013.V4.281

Profitability Performance of Selected Top Listed Malaysian GLCs and non-GLCs

Nordin Haji Mohamad and Fatimah Said

Abstract—The purpose of this study is to measure and compare the profitability performance of selected top-listed Malaysian companies, both government linked and non-government linked companies. A linear programming based methodology, known as data envelopment analysis, DEAis used to measure the relative performance of each company by utilizing a list of normalized performance indicators for the period 2009-2011. In addition to estimating technical and scale efficiency, DEA also provides a mean of measuring returns to scale – increasing, constant and decreasing – and identifying companies exhibiting the most productive scale size, mpss. The DEA scores indicate that only a small number of the companies were operating on the best-practice frontier under the assumptions of constant and variable returns to scale.Comparisons are made between government-linked and non-government linked companies. Most of the companies showed serious scale inefficiency and exhibited decreasing return to scale.

Index Terms—Data envelopment analysis, government linked companies, performance, relative technical efficiency.

N. H. Mohamad is with Institute of Mathematical Sciences, University of Malaya, 50603 Kuala Lumpur, Malaysia (e-mail: nordinhm@um.edu.my).
F. Said is with the Faculty of Economics and Administration, University of Malaya, 50603 Kuala Lumpur, Malaysia (e-mail: fatimahs@um.edu.my).

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Cite:Nordin Haji Mohamad and Fatimah Said, "Profitability Performance of Selected Top Listed Malaysian GLCs and non-GLCs," International Journal of Trade, Economics and Finance vol. 4, no. 4, pp. 177-181, 2013.

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