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Impact of Ownership Patterns and Firm Life‐Cycle Stages on Firm Performance: Evidence From India
Author(s) -
Sridharan Srividhya,
Joshi Medha
Publication year - 2018
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22315
Subject(s) - foreign ownership , business , product life cycle management , empirical evidence , accounting , industrial organization , monetary economics , economics , marketing , foreign direct investment , macroeconomics , philosophy , epistemology
This article reexamines the relationship between ownership patterns and firm financial performance through the prism of firm life‐cycle stages. We use an unbalanced panel data set from the S&P BSE 500 companies in the emerging Indian market over nine years. We adopt multivariate analysis with covariance to explore the relationship between ownership patterns and firm performance across various stages of a firm's life cycle. Empirical results suggest that firm life cycle is a key indicator in the study of relationship between ownership patterns and firm performance. Performance is optimized by different patterns of ownership over different life‐cycle stages. Closely held firms perform better than widely held firms, and those with foreign promoter holdings outperform in most life‐cycle stages. © 2018 Wiley Periodicals, Inc.