AAMJAF Vol you 81104 2005ASIAN ACADEMY

AAMJAF Vol 1 81104 28.08.2019
 AAMJAF Volume 1 81104 2005ASIAN SENIOR HIGH Essay

AAMJAF, Vol. you, 81–104, 2006

ASIAN ACADEMY of

SUPERVISION JOURNAL

of ACCOUNTING

and FINANCE

COMPANY SIZE, CONTROL AND PERFORMANCE IN THE

MALAYSIAN PALM OIL INDUSTRY

Municion Ramasamy1*, Darryl Ong2 and Matthew C. H. Yeung3

1, a couple of

Nottingham School Business University, Malaysia Grounds, Jalan Broga, Semenyih, Selangor, Malaysia

three or more

School of Business, The Open University or college of Hong Kong, 30 Good Shepherd Street, Homantin, Kowloon, Hong Kong

*Corresponding author: bala. [email protected] edu. my

ABSTRACT

The objective of this study should be to analyse the effects of market framework components and other performance measures to better be familiar with dynamics and determinants of performance within the Malaysian palm oil sector. Especially, we consider the effects of organization size and firm ownership on the level of profitability from this sector. The findings claim that size is adversely related to overall performance while for yourself owned plantation companies are more profitably maintained. These results support the recent approach by the Malaysian government to postpone the listing of the Federal Land Advancement Authority (FELDA), a government agency in charge of managing government land techniques and business development of plantations. It also deepens support towards the ongoing approach of increasing the functionality of Government Associated Corporations (GLC) in Malaysia.

Keywords: Malaysia, palm oil, privatisation, performance

INTRO

Malaysia is the world's greatest producer and exporter of palm oil, adding to almost fifty percent of world palm oil development in 2002 and about 58% of community exports. Malaysia has certainly helped form the position of oil from palm in the global market through significant contributions and commitment to the market. At the same time, the growing global demand for consumable oils and fats features further fuelled the Malaysian palm oil industry, which has loved growth during the last 81

Bala Ramasamy, Darryl Ong & Matthew C. H. Yeung

few decades, which is undeniably a significant component of the Malaysian economy.

Of the a few. 67 million hectares of oil hands planted in Malaysia in 2002, 60% were below private possession, most of that happen to be run by simply firms in the private sector. The largest between these companies, that are listed on the Bursa Malaysia or BM (the Malaysian Inventory Exchange), are Kumpulan Guthrie Berhad, Glowing Hope Farms Berhad, Kuala Lumpur Kepong Berhad and IOI Firm Berhad. However , most planting companies in the industry are not entirely privately operate. Permodalan Nasional Berhad (PNB), the Malaysian Government's expenditure arm, is the owner of sizeable portions of equity in Fantastic Hope, Kumpulan Guthrie and Sime Darby Berhad, producing PNB a serious shareholder in many big plantation players. In the public sector, the key gamer is the Government Land Creation Authority (FELDA), a government agency responsible for managing govt land schemes and business development of plantations. In 2002, FELDA by itself accounted for seventeen. 7% in the total oil palm selected and planted area in Malaysia.

The palm oil industry has been reserved by the Malaysian Government as being a critical gamer in its aspiration of becoming an industrialised land (Vision 2020). Under the Third National Agricultural Policy (1992–2010), various policies have been created to ensure that Malaysia's position inside the world's oils and fats market is not simply sustained, although also increased and its competitive edge taken care of. To go after this target the palm oil sector have been identified as a spotlight area to get consolidation and restructuring. The Government's aspires are: (a) to create the world's greatest oil side plantation firm thereby leveraging economies of scale and hopefully become an efficient style for others to follow along with, (b) to enhance investors' interest and enhance tradability with the stock, and (c) to spearhead work in creating large capitalisation stock.

The latest events show that activities towards these kinds of aim may well be under approach. Plans to merge...

Recommendations: Ahuja, G. and Majumdar, S. E. (1998). A great assessment in the performance of

Indian state owned enterprises

Amato, L. and Wilder, R. S. (1990). Firm and market effects in industrial

economics

Barney, J. (1991). Organization resources and sustained competitive advantage. Record

of Managing, 17, 99–120.

Basiron, Sumado a. (2002). Palm oil and its global supply and demand prospects. Oil

Hand Industry Monetary Journal, 2(1), 1–10.

Boardman, A. and Vining, A. (1989). Control and performance in competitive

environment: A comparison from the performance of private, mixed and state

Bothwell, J. M., Cooley, T. F. and Hall, T. E. (1984). A new view of the market

structure – Performance controversy

Boubakri, D. and Cosset. J. C. (1998). The financial and operating functionality

of newly-privatised firms: Proof from expanding countries

Financial, 53, 1081–1110.

Capon, N., Farley T. V. and Hoenig, H. (1990). Determinants of financial

overall performance: A meta-analysis

Chrystal, T. A. and Lipsey, 3rd there�s r. G. (1997). Economics for business and

managing

Collins and Preston. (1969). Price expense margins and industry composition. Review of

Economics and Figures, 51(3), 271–87.

Dalton, L. A. and Penn, Deb. W. (1976). The attention profitability

marriage: Is there a important concentration percentage? Journal of Economics,

Downs, A. (1967). Inside bureaucracy. Boston: Tiny, Brown & Co.

M 'Souza, L. (1998). Privatization of telecommunication companies: A great empirical

examination

D 'Souza, J. and Megginson, Watts. L. (1999). The financial and operating

performance of newly privatised firms in the 1990s

Economical Planning Unit, Prime Ressortchef (umgangssprachlich) 's Office of Malaysia. (1985).

Gabriel, A. and Oh, Electronic. (2003, September 20). Floating the 'promised land '. The

Celebrity: Biz Week.

Galal, A., Jones, L., Tandon, P. and Vogelsang, I. (1994). Welfare effects

of offering public corporations

Gaskins, Deb. W. (1970). Optimal pricing by dominating firms. Unpublished Ph. D.

Greene, W. H. (1995). LIMDEP variation 7. zero user 's manual. Bellport, NY:

Econometric Software, Inc.

Hall, Meters. and Weiss, L. (1967). Firm size and earnings. Review of Economics

and Stats, 49, 319–331.

Hannan, M. and Freeman, J. (1989). Organizational ecology. Cambridge, MOTHER:

Harvard University Press.

Kessler, E. They would. and Chakrabarti, A. E. (1999). Speeding up the speed of new

application

Kumar, L. (1985). Regarding industrial company in India. New Delhi: Deep &

Deep Publications, 27.

LaPorta, R. and Lopez-di-Silanes, Farreneheit. (1999). Great things about privatization – Evidence

by Mexico

Malaysian Palm Oil Board (MPOB). (2002). Malaysian olive oil palm figures 2001.

. (2003). Malaysian petrol palm figures 2002. Kelana Jaya: MPOB.

Marcus, Meters. (1969). Earnings and size of firm: Several further data. The

Report on Economics and Statistics, 51(1), 104–109.

Megginson, W. M., Nash, 3rd there�s r. and truck Randenborgh, Meters. (1994). The financial and

operating performance of recently privatised organizations: An international empirical

Ming, E. K. (2001). Strategic drive in dealing with current challenges: The

plantation perspective

Montgomery, C. A. (1979). Variation, market framework and organization

performance: An extension of Rumelt 's model

Pant, M. W. (1991). An investigation of industry and firm strength

characteristics include turnarounds

Peteraf, M. (1993). The cornerstones of competitive advantage: A resource-based

view

Poensgen, O. H. and Marx, Meters. (1985). Coping with or profiting from size.

Porter, M. (1981). The contributions of industrial company to ideal

management

Prescott, E. C. and Vischer, S. (1980). Organisation capital. Journal of Political

Economy, 88, 446–461.

Ramamurti, L. (1997). Testing the limits of privatization: Argentine railroads.

Globe Development, 25, 1973–1993.

Reinhard, S. (1983). A model of oligopolistic size structure and profitability.

Sarkaria, M. and Shergill, G. S. (2000). Market framework and economic

performance – An Indian evidence with enhanced settings

Scherer, Farreneheit. (1980). Industrial market composition and financial performance

(2nd ed. )

Scott, M. T. and Pascoe, G. (1986). Further than firm and industry effects on

profitability in imperfect markets

Uniqueness of Malaysian Composition Essay

News