IDEAS home Printed from https://ideas.repec.org/p/wdi/papers/1997-64.html
   My bibliography  Save this paper

Foreign Ownership and Profitability: Property Rights, Strategic Control and Corporate Performance in Indian Industry

Author

Listed:
  • Pradeep K. Chhibber
  • Sumit K. Majumdar

Abstract

This study examines the influence of foreign ownership on the performance of fmtis operating in India. Foreign ownership is categorized according to the control exercisable at different levels of ownership. These categories are, in turn, determined by the institutional structure of the Indian environment which helps define define the property rights accruing at different levels of ownership. Firms' performance is measured as return on sales and return on assets. The results show that, after controlling for a variety of fin-n and environment-specific factors, only when property rights devolve to foreign owners, at ownership levels providing unambiguous control at 51 percent, do firms in which there is foreign ownership display relatively superior performance. Implications for managers of foreign firms contemplating investments, either de-novo or augmenting already-existing stakes, in India and for policy are also discussed.

Suggested Citation

  • Pradeep K. Chhibber & Sumit K. Majumdar, 1997. "Foreign Ownership and Profitability: Property Rights, Strategic Control and Corporate Performance in Indian Industry," William Davidson Institute Working Papers Series 64, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:1997-64
    as

    Download full text from publisher

    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39454/3/wp64.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Huang & Agyenim Boateng, 2013. "The role of the state, ownership structure, and the performance of real estate firms in China," Applied Financial Economics, Taylor & Francis Journals, vol. 23(10), pages 847-859, May.

    More about this item

    Keywords

    foreign ownership; multinational firms; strategic control; profitability; Indian industry;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wdi:papers:1997-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: WDI (email available below). General contact details of provider: https://edirc.repec.org/data/wdumius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.