Does Ownership Structure Influence Firm Value? Evidence from India

By Jayesh Kumar. Social Science Research Network, 2003

156 citations recorded by the source corpus.

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.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/2bc3ce999acdf2f84f65950459a6b53efe4962ef

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Citations in the corpus

• The Impact of Capital Structure on Firm Performance: Evidence from Vietnam (2020, background): “Kumar (2003) compared the financial performance of state-owned, private-owned, and mixed state-private ownership companies in India from 1973 to 1989.”
• The Examination of the Effect of Ownership Structure on Firm Performance in Listed Firms of Tehran Stock Exchange Based on the Type of the Industry (2011, background): “Kumar, J. (2003). Does Ownership Structure Influence Firm Value? Evidence from India.”