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Corporate Governance, Competition and Firm Performance: Evidence from India

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  • Manoranjan Pattanayak Author- Workplace-Name: CRISIL LIMITED
  • Manoj Pant

    (Centre for International Trade and development)

Abstract

The aim of this paper is to show the interaction effect of product market competition and corporate governance variables on firm performance. While the linkage between internal governance mechanism and firm performance is well established in several studies, the interaction between internal and external governance mechanism has received scanty attention in emerging market economies. Here we have shown the independent and interaction effect of ownership and competition variable on firm productivity. Contrary to conventional wisdom, we document that competition has in reality become a discernible force in developing economies. The econometric modelling result shows while the standalone effect of ownership variable on productivity is mostly insignificant, there is a strong positive interaction effect with competition variables.

Suggested Citation

  • Manoranjan Pattanayak Author- Workplace-Name: CRISIL LIMITED & Manoj Pant, "undated". "Corporate Governance, Competition and Firm Performance: Evidence from India," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 10-07, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    • Handle: RePEc:ind:citdwp:10-07
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    2. Neema Mori & Trond Randøy & Sougand Golesorkhi, 2013. "Determinants of Board Structure in Microfinance Institutions: Evidence from East Africa," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 12(3), pages 323-365, December.

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