Does share-holding pattern affect firm performance? Evidence from India

被引：3

作者：

Singh, Geeta ^{[1
]}

Kumar, Satish ^{[1
]}

Vijayalakshmi, Sedidi ^{[1
]}

Bhattacharjee, Kaushik ^{[1
]}

机构：

[1] ICFAI Fdn Higher Educ, IBS Hyderabad, Dept Finance & Accounting, Hyderabad, Telangana, India

来源：

JOURNAL OF PUBLIC AFFAIRS | 2022年 / 22卷 / 03期

关键词：

agency problem; alignment; entrenchment; firm performance; institutional investors; ownership structure; promoters; FOUNDING-FAMILY OWNERSHIP; BUSINESS GROUPS; FOREIGN; ENTRENCHMENT; BEHAVIOR;

D O I：

10.1002/pa.2691

中图分类号：

C93 [管理学]; D035 [国家行政管理]; D523 [行政管理]; D63 [国家行政管理];

学科分类号：

12 ; 1201 ; 1202 ; 120202 ; 1204 ; 120401 ;

摘要：

In this paper, we investigate the impact of promoters and institutional investors' equity ownership on the firm performance in the Indian context. Using a sample of 1583 firms during 2010-2019, our results suggest a positive relation between promoter ownership and firm performance, supporting the alignment effect, where the interests of promoters and managers align in the same direction. On the one hand, our results support the global advantage hypothesis in that the foreign institutional investors (FIIs) positively impact the firm performance, implying that the FIIs are vigilant shareholders, and actively monitor the firm performance. On the other hand, we reject the hometown advantage hypothesis since the domestic institutional investors (DIIs) like banks and other financial institutions are found to have negative relation with firm performance. Overall, we conclude that shareholding pattern does affect the firm performance. Our results are insensitive to various robustness tests.

引用

页数：9

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