Liquidity determinants of government linked companies (GLCs) in Malaysia (2015 – 2019) / Amir Adnan Abdul Rani

Advanced Medical and Dental Institute (AMDI) is a government-linked institution where my internship placement done from 1st March 2021 until 13th August 2021. Apart from that, several issues had been determined along the industrial training journey throughout the semester. Regression analysis had been done in according to the arise issues. Liquidity is an important issue in financial decision making as it includes investment in asset that requires appropriate financing investment. This study provides insights on the important factors that influence the liquidity of Government-Linked Companies (GLC) in Malaysia. In this study, it consists of 75 observations of 15 firms from year 2015 to 2019 in determining which firm-specific factors are reliably important in explaining the liquidity of these firms. The current ratio is used as dependent variable while cash, account receivable and short-term debt are used as independent variables. Regression analysis were carried out on the unbalanced panel data. The findings of this study indicate that the variables of cash and account receivables positively affects the firms’ liquidity while short-term debt negatively affect the firms’ liquidity of GLCs in Malaysia. However, account receivables appear to be insignificant in affecting the firm’s liquidity of GLCs in Malaysia