The Role of Ownership Structure in Firm Performance: A Study of Indian Manufacturing Firms

The IUP Journal of Corporate Governance, Vol. XI, No. 3, July 2012, pp. 36-47

Posted: 9 Nov 2012

See all articles by Sudeepta Pradhan

Sudeepta Pradhan

IFHE-Hyderabad

Rajesh Pathak

affiliation not provided to SSRN

Ranajee Jee

Institute of Chartered Financial Analysts of India (ICFAI) - The Icfai University (IFHE), Hyderabad

Date Written: November 8, 2012

Abstract

The significance of corporate governance has increased in the recent past due to factors like increase in corporate scandals. Such scandals tend to increase the risk of the stakeholders to a great extent. While stakeholders have the capability to influence the forbearance and performance of an organization, such impact varies with the industry. This study makes an endeavor to find the impact of promoter holding, institutional holding and individual holding on firm performance by analyzing several diverse industries. Seven industries are considered in the Indian context for the purpose of this study, taking ROA as a major performance indicator. The results show positively significant effect of some stakeholders, while negative for the others, substantiating the need for more research in the area.

Suggested Citation

Pradhan, Sudeepta and Pathak, Rajesh and Jee, Ranajee, The Role of Ownership Structure in Firm Performance: A Study of Indian Manufacturing Firms (November 8, 2012). The IUP Journal of Corporate Governance, Vol. XI, No. 3, July 2012, pp. 36-47. Available at SSRN: https://ssrn.com/abstract=2172729

Sudeepta Pradhan (Contact Author)

IFHE-Hyderabad ( email )

Donthanapally Shankarapalli Road
RAJAWALA ROAD
Hyderabad, RI 501203
India

Rajesh Pathak

affiliation not provided to SSRN ( email )

Ranajee Jee

Institute of Chartered Financial Analysts of India (ICFAI) - The Icfai University (IFHE), Hyderabad ( email )

Donthanapally Shankarapalli Road
RAJAWALA ROAD
Hyderabad, RI Andhra Pradesh 501203
India

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