Template-Type: ReDIF-Paper 1.0
Author-Name: Swarnodeep Homroy
Author-Name-First: Swarnodeep
Author-Name-Last: Homroy
Author-Name: Shantanu Banerjee
Author-Name-First: Shantanu
Author-Name-Last: Banerjee
Title: The Structure of Corporate Holdings and Corporate Governance: Evidence from India
Abstract: This paper examines how the structure of corporate holdings impacts upon the corporate governance mechanisms and outcomes. Using a panel data of 500 large listed Indian …firms we compare …firms with dispersed equity ownership, and business group …firms with cross-holdings and concentrated family ownership, within the same institutional frameworks. Contrary to the popular hypothesis that concentrated shareholding leads to worse corporate governance outcomes, we find that the corporate governance outcomes are similar for both types of …firms, even though the incentive alignment mechanisms may be different. The results of this paper suggest that corporate holding structures and governance mechanisms adjusts to optimize value and performance.
Creation-Date: 2015
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2015_013.pdf
File-Format: application/pdf
Number: 84979625
Classification-JEL: G15, G28, G32
Keywords: business groups, corporate governance, concentrated share ownership, corporate holding structure
Handle: RePEc:lan:wpaper:84979625