Investigating the Role of Large Ownership on Firm Performance

Rishabh Goswami () and Arun Kumar Gopalaswamy ()
Additional contact information
Rishabh Goswami: FLAME University
Arun Kumar Gopalaswamy: Indian Institute of Technology Madras

Chapter Chapter 12 in Financial Markets and Corporate Finance, 2024, pp 223-239 from Springer

Abstract: Abstract This study examines the effect of large owners’ identity and shareholding concentration on firm performance. The large owners examined in this study are classified as individuals, institutions, corporates, government, and others. The study uses a balanced panel dataset of non-financial firms listed on the National Stock Exchange (NSE) of India. It comprises 1072 listed firms from 2010 to 2022. The analysis uses the fixed effects method with cluster robust standard errors. The empirical findings indicate varying effects of ownership identities on firm performance. Further, the effect of ownership identity on accounting and market performance differs when considering their respective shareholding concentration. However, the study indicates that when corporates hold the largest ownership, firms report significantly better accounting and market performance than the rest of the ownership identities. The performance of the firms where corporates hold the largest stake tends to increase with a rise in shareholding by the corporate owners.

Keywords: Large owners; Controlling owners; Ownership identity; Ownership concentration; Firm performance (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-981-97-6242-2_12

Ordering information: This item can be ordered from
http://www.springer.com/9789819762422

DOI: 10.1007/978-981-97-6242-2_12

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().