Disentangling the Performance and Entrenchment Effect of Family Shareholding: A Study of Indian Corporate Governance
Jawaharlal Nehru University
November 12, 2008
Using an econometric framework, I have tried to establish the relationship between Tobin's Q and family shareholding. While there is no unequivocal causality established by theories, empirical evidences present wide variation in findings. By controlling several firm and industry specific factors, I found a non-linear relationship between family holding and Q ratio. Many studies have raised the issue of endogeneity in governance literature as it is detrimental to the empirical observations. I have tried to address this issue via instrumental variable regression method. While in several specifications, the curvilinear aspect of the relationship remained intact; I fail to trace any endogeneity problem in ownership variables.
Number of Pages in PDF File: 31
Keywords: Corporate Governance, Insider Ownership, Promoter Shareholding, India
JEL Classification: G32, G34working papers series
Date posted: January 20, 2009
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.391 seconds