The Role of Ownership Structure in Firm Performance: A Study of Indian Manufacturing Firms

Abstract

The significance of corporate governance has increased in the recent past due to factors like increase in corporate scandals. Such scandals tend to increase the risk of the stakeholders to a great extent. While stakeholders have the capability to influence the forbearance and performance of an organization, such impact varies with the industry. This study makes an endeavor to find the impact of promoter holding, institutional holding and individual holding on firm performance by analyzing several diverse industries. Seven industries are considered in the Indian context for the purpose of this study, taking ROA as a major performance indicator. The results show positively significant effect of some stakeholders, while negative for the others, substantiating the need for more research in the area.