Who Owns Indian Companies? A Decade of Shareholding Patterns of Automobile and IT Industry

IOSR Journal of Business and Management, Vol. 16, No. 10, p. 1, 2014

10 Pages Posted: 9 Dec 2014

See all articles by Vincent Tawiah

Vincent Tawiah

Griffith University; University of Mysore - Department of Commerce; University of Cape Coast; Dublin City University Business School

Mudaheranwa Benjamin

M.M.U. Institute of Computer Technology & Business Management

Date Written: October 1, 2014

Abstract

It is not unusual for entity to derive its ownership and control structure from the culture and traditions of country of origin. It has become cliché that Indian companies are dominated by family ownership in the form of promoters due to the strong family cultural system of the country. Focusing on the Automobile and the IT industry, this paper takes particular look at the shareholding distribution over the last decade ending 2013. Sampling top 10 companies from the industries, a comparative trend, median and mean analysis was conducted within and between the industries. The research reveals that concentrated promoter’s ownership is still strong both companies especially in the automobile industry with more than 50% promoters’ shares. Promoters’ ownership in the IT industry had steep fall from 57.1% in 2004 to 45.0% in 2013. It was known from the study that the automobile industry has more both institutional and individual investors than the IT industry, but the institutional investors’ in increasing faster in the IT industry than the Automobile industry. It was concluded that, age of the firm as well as internationalisation of the company have impact on the shareholding patterns. Whiles old companies in the Automobile industry are family dominated ownership in the form of promoters, global companies in the IT industry are less concentrated with promoter’s ownership.

Keywords: Individuals, Institutional, Promoters, Shareholding pattern

Suggested Citation

Tawiah, Vincent and Benjamin, Mudaheranwa, Who Owns Indian Companies? A Decade of Shareholding Patterns of Automobile and IT Industry (October 1, 2014). IOSR Journal of Business and Management, Vol. 16, No. 10, p. 1, 2014, Available at SSRN: https://ssrn.com/abstract=2534899

Vincent Tawiah (Contact Author)

Griffith University ( email )

PMB 50
Gold Coast Queensland 9726
Australia

University of Mysore - Department of Commerce ( email )

Mysore
India

University of Cape Coast ( email )

PMB, UCC, GHANA
Department of English
Cape Coast, Central Region
Ghana

HOME PAGE: http://ucc.edu.gh

Dublin City University Business School ( email )

Dublin 9
Ireland

Mudaheranwa Benjamin

M.M.U. Institute of Computer Technology & Business Management

Mullana
Ambala
India

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