Open AccessShareholding Patterns and its Impact on Firm Performance: A Contemporary Study of Indian NIFTY 50 Companies
Author(s) -
Raghu Katragadda,
A. Sreeram
Publication year - 2018
Publication title -
asian journal of managerial science/asian journal of managerial science
Language(s) - English
Resource type - Journals
eISSN - 2583-9810
pISSN - 2249-6300
DOI - 10.51983/ajms-2018.7.1.1291
Subject(s) - insider , corporate governance , business , stakeholder , market capitalization , empirical research , accounting , investment (military) , control (management) , value (mathematics) , enterprise value , economics , finance , management , stock market , political science , paleontology , philosophy , horse , epistemology , machine learning , politics , computer science , law , biology
Ownership structure or the stakeholder structure of an organization often play significant role in operations decision, monitoring and control. This as a result possesses influences over process and hence performance. On the other hand, the role of stakeholders and respective conflict of interests can also be not ruled out. Under such circumstances, assessing the impact of organizational structure or stakeholder pattern and firm performance becomes inevitable to assess. In addition, the relationship between the investment pattern and respective conflicts of interests is inevitable to be examined. To ensure investment security corporate governance has played vital role that suggests assessing the inter-relationship between the stakeholder pattern and firm performance. With this motivation, in this paper an empirical study has been done to examine the impact of internal shareholding patterns on the associated firm’s performance. In this paper we have performed an empirical study where the aforementioned relationship has been examined for Indian listed NIFTY 50 companies for the duration of the financial year 2011 to 2016. Our empirical results provide evidence that insider shareholding is positively and significantly related to the firm performance as measured by market capitalization; market value by book value and Tobin’s Q.