Empirical Study on Ownership Structure and Firm Performance

“Empirical Study on Ownership Structure and Firm Performance,” Indian Journal of Corporate Governance, 4(2) 27-34.

8 Pages Posted: 7 Dec 2012 Last revised: 16 Jul 2018

See all articles by Arunima Haldar

Arunima Haldar

S.P. Jain Institute of Management and Research

S.V.D. Nageswara Rao

Indian Institute of Technology (IIT), Bombay - Shailesh J. Mehta School of Management (SJM)

Date Written: July 1, 2011

Abstract

Researchers have come up with varied assertions with regard to the relationship between ownership structure and firm performance. Positive as well as negative relationships at differing levels of equity holdings by managers have been suggested by researchers leading to inconclusive results. Findings suggests that promoter controlled firm’s performance is better than manager controlled ones, but empirical assertion for the same has been lacking in developing countries.

This research focuses on investigating empirically the efficacy of ownership groups in enhancing corporate performance in India, a developing nation. The study analyzes large cap firms (BSE 500) for the period 2000-2008 using fixed effect technique by taking into account both accounting as well as market based measures of performance. Findings suggest that promoter’s are the major contributors in the firm performance whereas non promoter’s hinders the firm performance.

Keywords: corporate governance, ownership structure, firm performance, concentration, promoter controlled, panel data

Suggested Citation

Haldar, Arunima and Nageswara Rao, S. V. D., Empirical Study on Ownership Structure and Firm Performance (July 1, 2011). “Empirical Study on Ownership Structure and Firm Performance,” Indian Journal of Corporate Governance, 4(2) 27-34., Available at SSRN: https://ssrn.com/abstract=2185860

Arunima Haldar (Contact Author)

S.P. Jain Institute of Management and Research ( email )

Munshi Nagar, Dadabhai Road
Andheri West
Mumbai, Maharashtra 119579
India

S. V. D. Nageswara Rao

Indian Institute of Technology (IIT), Bombay - Shailesh J. Mehta School of Management (SJM) ( email )

Powai
Mumbai 400076
India
91-22-25767789 (Phone)
91-22-25722872 (Fax)

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