Ownership in Emerging Market Firms and International investments: Board independence and CEO duality as Moderators

Panicker Vidya Sukumara (), Mitra Sumit () and Upadhyayula Rajesh Srinivas ()
Additional contact information
Panicker Vidya Sukumara: Indian Institute of Management Kozhikode
Mitra Sumit: Indian Institute of Management Kozhikode
Upadhyayula Rajesh Srinivas: Indian Institute of Management Kozhikode

No 252, Working papers from Indian Institute of Management Kozhikode

Abstract: Extant literature examines the relationship between various categories of owners and internationalization in the context of emerging economies. However, these studies based on agency perspectives ignore the differences between the controlling and non-controlling principals and their risk preferences. In this paper, we use the behavioural risk perspective to understand the risk perception and risk propensities of different types of principals of a firm (family and institutional investors), and the subsequent impact on firm internationalization. We employ resource dependence perspective to understand how the board of directors moderate the preferences of these owners. Empirical results from a sample of 1239 unique Indian firms during the period from 2005-2016 show that the ownership share of different types of principals is associated with firms’ international investments differently. Families influence internationalization negatively, whereas institutional shareholders support internationalization activities of the firms. However, an independent board, in the form of independent directors, and separation of CEO-Chairman roles, results in the convergence of preferences of both these ownership types.

Keywords: Social enterprises (search for similar items in EconPapers)
Pages: 3 pages
Date: 2018-02
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://iimk.ac.in/websiteadmin/FacultyPublication ... 201802%20updated.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iik:wpaper:252

Access Statistics for this paper

More papers in Working papers from Indian Institute of Management Kozhikode IIMK Campus PO, Kunnamanagalam, Kozhikode, Kerala, India -673570. Contact information at EDIRC.
Bibliographic data for series maintained by Sudheesh Kumar ().