Foreign institutional investment, business groups and firm performance: Evidence from India

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• 作者：Jhuma Mukhopadhyay ; PhD Scholar^a ; ^{mukhopadhyay.jhuma@gmail.com} ; Indrani Chakraborty^b (Professor)
• 关键词：C23 ; C33 ; C36 ; G30 ; G32
• 刊名：Research in International Business and Finance
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：39
• 期：part_PA
• 页码：454-465
• 全文大小：615 K
• 卷排序：39

文摘

The article tries to examine the relationship between equity ownership held by the foreign institutional investors and firm performance both in a static and a dynamic framework. We also examine how the relationship differs between group-affiliated and stand-alone firms. By employing the 2SLS panel data estimation technique on 137 BSE listed Indian firms, the study finds that foreign institutional investment has a positive influence on the firm performance as measured through Tobin’s Q and ROA.Application of linear dynamic panel data estimation in a dynamic framework also yields similar results.The latter method also shows that FII has a positive significant effect on Tobin’s Q in group-affiliated firms. The results are analysed from the perspective of a multi-theoretic approach consisting of agency theory, information asymmetry theory, institutional theory and resource dependency theory.