"Size distribution of shareholdings in manufacturing companies of Malaysia, 1974-75"

Abstract

The issue of ownership distribution in Malaysian companies is not new. But up till now, the size of holdings, a variable crucial for the analysis of ownership pattern and more so for the understanding of corporate control structure within companies, has been left neglected. This paper attempts to fill this gap, though not exhaustively, with data compiled from official shareholders' lists of the largest ninety eight Malaysian incorporated companies, engaged in manufacturing, by paid up capital for one point in time. The reference year is 1974-75, towards the end of the Second Malaysia Plan period. Empirical analysis is performed on ordinary, preference and other issues found in the companies. Comparisons are made between the size distribution of holdings owned by individual persons and that by non-persons, and between that owned by Malaysians and by non-Malaysians. Differentials of holdings amongst the various racial groups of Malaysian persons are also highlighted, taking into consideration similarities and disparities between the sexes. The focus on size distribution leads almost naturally to the discussion of ownership concentration as well as inequalities. Two measures, namely Lorenz curves and Gini indices are employed to facilitate estimation of the extent of concentration, hence the degree of inequality in ownership for the same set of variables.