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Does Concentrated Shareholding Impact Family Firm Internationalisation?

Author

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  • V. Vijayagopal
  • M. Thenmozhi

Abstract

This article investigates whether increase in concentrated shareholding impacts the internationalisation of family firms. Based on a multi-theoretic approach and using zero inflated beta model on a panel data set covering 307 largest Indian listed companies, we observe that concentrated ownership, adverse employee relations and business group affiliation discourage internationalisation. But as family shareholding exceeds 50%, concentrated ownership has an indirect positive balancing impact on internationalisation. Besides, status as a family firm has a significant favourable impact on internationalisation and it moderates the impact of concentrated ownership, adverse employee relations and group affiliation on internationalisation.

Suggested Citation

  • V. Vijayagopal & M. Thenmozhi, 2023. "Does Concentrated Shareholding Impact Family Firm Internationalisation?," Indian Journal of Corporate Governance, , vol. 16(2), pages 298-322, December.
    • Handle: RePEc:sae:ijcgvn:v:16:y:2023:i:2:p:298-322
    DOI: 10.1177/09746862231206870
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    References listed on IDEAS

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