Affiliation and Firm Performance: Evidence from Indian Business Groups

Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: Using data on a sample of Indian firms from 1996-2006, 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 RoA. Moreover, the evidence indicates that tunneling is not an important factor driving the valuation and profitability effect of group affiliation.

Keywords: Business groups; Adjusted Q; RoA; Tunneling; Promoter’s share; India (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2010-03
New Economics Papers: this item is included in nep-eff and nep-sbm
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Citations: View citations in EconPapers (3)

Published in The Manchester School 3.78(2010): pp. 183-200

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Related works:
Journal Article: AFFILIATION AND FIRM PERFORMANCE: EVIDENCE FROM INDIAN BUSINESS GROUPS (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24291

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