Dominating Shareholders in Indian Organizations – Their Relevance for Corporate Governance and Firm Performance

58 Pages Posted: 4 Mar 2013

See all articles by Santosh Pande

Santosh Pande

Thought Arbitrage Research Institute

Valeed Ahmad Ansari

Aligarh Muslim University (AMU) - Department of Business Administration

Date Written: February 28, 2013

Abstract

Unlike the central governance issue in the Anglo Saxon world, which is essentially that of disciplining management that may stop being accountable to the owners, who are dispersed shareholders, the central challenge in corporate governance in India is that of disciplining the dominant shareholder and in protecting the interest of the minority shareholders.

Other forms of domination, besides family ownership, such as domination by government or a foreign group also exist in Indian organizations; additionally, often promoters of companies exercise influence that is disproportionate to their actual shareholding.

Our study finds that differences in the nature of the dominating shareholder result in significant differences in the firm’s corporate governance characteristics. Furthermore, while the corporate governance parameters do not have any significant impact on the firm’s performance, the nature of the dominating shareholder significantly impacts the firm’s performance

Suggested Citation

Pande, Santosh and Ansari, Valeed Ahmad, Dominating Shareholders in Indian Organizations – Their Relevance for Corporate Governance and Firm Performance (February 28, 2013). Available at SSRN: https://ssrn.com/abstract=2226403 or http://dx.doi.org/10.2139/ssrn.2226403

Santosh Pande (Contact Author)

Thought Arbitrage Research Institute ( email )

C-16, Qutab Institutional Area,
New Delhi, New Delhi 110016
India

HOME PAGE: http://www.tari.co.in

Valeed Ahmad Ansari

Aligarh Muslim University (AMU) - Department of Business Administration ( email )

Aligarh
India

Register to save articles to
your library

Register

Paper statistics

Downloads
167
Abstract Views
1,203
rank
176,324
PlumX Metrics