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Affiliation And Firm Performance: Evidence From Indian Business Groups

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  • SAIBAL GHOSH

Abstract

Using data on a sample of Indian firms from 1996 to 2006, we examine the effect of group affiliation on firm performance. After controlling for the differences in firm size, growth opportunities and leverage, the findings indicate that group affiliation exerts a salutary impact on firm performance, measured in terms of adjusted Q or return on assets. Moreover, the evidence indicates that tunnelling is not an important factor driving the valuation and profitability effect of group affiliation. Copyright © 2010 The Author. Journal compilation © 2010 Blackwell Publishing Ltd and The University of Manchester.

Suggested Citation

  • Saibal Ghosh, 2010. "Affiliation And Firm Performance: Evidence From Indian Business Groups," Manchester School, University of Manchester, vol. 78(3), pages 183-200, June.
  • Handle: RePEc:bla:manchs:v:78:y:2010:i:3:p:183-200
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    Cited by:

    1. Becker-Ritterspach, Florian & Bruche, Gert, 2012. "Capability creation and internationalization with business group embeddedness – the case of Tata Motors in passenger cars," European Management Journal, Elsevier, vol. 30(3), pages 232-247.
    2. Xavier, Wlamir Gonçalves & Bandeira-de-Mello, Rodrigo & Marcon, Rosilene, 2014. "Institutional environment and Business Groups' resilience in Brazil," Journal of Business Research, Elsevier, vol. 67(5), pages 900-907.

    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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