Insider Ownership, Corporate Governance and Corporate Performance

NSE Research Initiative Proposal No. 89

26 Pages Posted: 7 Apr 2005

See all articles by Phani BV

Phani BV

Indian Institute of Technology Kanpur

V. N. Reddy

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

N. Ramachandran

Asian Institute of Technology

Asish K. Bhattacharyya

Nonlinear Insights ; Shiv Nadar University; Shiv Nadar University

Abstract

Insider ownership reflects the governance problem arising due to variance in the cash flow and control rights such ownership entails. Insider ownership is normally defined as managerial ownership without distinguishing between manager-owner and owner-manager. We believe that without taking due care of this distinction any generalization of prior conclusions relating insider ownership with performance particularly in the Indian context will not be meaningful. This paper attempts to study this anomaly by examining the role of insider ownership on the performance of the firm in the Indian context within the framework of changing external environment.

Keywords: Corporate governance, insider ownership, performance, agency theory, family business

JEL Classification: G3, G30, G32

Suggested Citation

Bollempalli, Venkata Phani and Reddy, Vanga Nagi and Ramachandran, N. and Bhattacharyya, Asish K., Insider Ownership, Corporate Governance and Corporate Performance. NSE Research Initiative Proposal No. 89, Available at SSRN: https://ssrn.com/abstract=696462 or http://dx.doi.org/10.2139/ssrn.696462

Venkata Phani Bollempalli (Contact Author)

Indian Institute of Technology Kanpur ( email )

IME, IIT Kanpur
Kanpur, Uttar Pradesh 208016
India
+91-512-2597877 (Phone)
+91-512-2597553 (Fax)

HOME PAGE: http://iitk.ac.in/new/b-v-phani

Vanga Nagi Reddy

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

Donthanapally Shankarapalli Road
RAJAWALA ROAD
Hyderabad, RI Andhra Pradesh 501203
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N. Ramachandran

Asian Institute of Technology ( email )

Pathumthani 12120
Thailand

Asish K. Bhattacharyya

Nonlinear Insights ( email )

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New Delhi, 110070
India
91 8527300499 (Phone)

HOME PAGE: http://nonlinear-insights.com

Shiv Nadar University ( email )

Shiv Nadar University ( email )

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