A study on the corporate governance of Singapore firms: the difference between Goverment-Linked Companies (GLCs) and Non-GLCs

Abstract

The objective of this research is to examine if there is a difference between GLCs and non-GLCs in Singapore, in terms of corporate governance. An index made up of 35 corporate governance factors will be used to compile a corporate governance score (CGS) for each sample firm and the CGS will be used as a gauge of the firm's strength in corporate governance. In addition, I will also look at how the government corporatist model, which involves the appointment of senior government officials to senior management and board positions of GLCs, practiced by the Singapore government affect firms' corporate governance. This study contributes to the knowledge of corporate governance in Singapore by constructing a 35-factor corporate governance index and using it to identify some of the corporate governance factors that influence the corporate performance of Singapore firms. Furthermore, this study will also attempt to determine if GLCs do have weaker corporate governance than non-GLCs and if there is any relationship between appointment practices and corporate governance. Finally, this paper will also examine the relationship between firms' CGS and their performance and determine if the hypothesis that better governed firms perform better than poorly governed firms holds true in the Singapore context.