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Does Ownership Structure Influence Firm Value? Evidence from India

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Author Info

  • Jayesh Kumar

    (Xavier Institute of Management)

Abstract

This paper examines the effect of ownership structure on the firm performance for an unbalanced panel of 2478 Indian corporate firms from 1994 to 2000. We examine the effect of interactions between corporate, foreign, institutional, and managerial ownership on firm performance. Using panel data framework, we show that a large fraction of cross- sectional variation, in firm performance can be explained by unobserved firm heterogeneity. We provide evidence that the shareholding by institutional investors and managers affect firm performance non- linearly, after controlling for observed firm characteristics and unobserved firm heterogeneity. We also find that the equity ownership by foreign and corporate shareholders do not influence firm performance. We find no evidence in favor of endogeneity of ownership structure.

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File URL: http://128.118.178.162/eps/fin/papers/0406/0406008.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Finance with number 0406008.

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Length: 48 pages
Date of creation: 20 Jun 2004
Date of revision:
Handle: RePEc:wpa:wuwpfi:0406008

Note: Type of Document - pdf; pages: 48
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Web page: http://128.118.178.162

Related research

Keywords: Corporate Governance; Ownership Structure; Firm performance; Panel Data; India.;

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References

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Citations

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Cited by:
  1. Nwidobie Barine Michael, 2013. "Agency Conflict and Corporate Dividend Policy Decisions in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(8), pages 1110-1121, August.
  2. Din, Shahab-u-Din & Javid, Attiya Yasmin, 2011. "Impact of Family Ownership concentration on the Firm’s Performance: Evidence from Pakistani Capital Market," MPRA Paper 37566, University Library of Munich, Germany.
  3. Din, Shahab-u- & Javid, Attiya Yasmin, 2011. "Impact of managerial ownership on financial policies and the firm’s performance: evidence Pakistani manufacturing firms," MPRA Paper 37560, University Library of Munich, Germany.

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