Impact of ownership pattern on firms's performance

Abstract

This paper analyses empirically the impact of ownership structure of 100 listed Indian companies on the firm performance. The ownership structure has taken into account the share holdings of promoters and non-promoters including the shareholding of the Government, Banks, Foreign institutions and the public. Three independent parameters were used as a proxy to measure the performance of the firm. They are the PAT as a percentage of sales, the Year on Years growth of the net sales and Year on Year increase in the share value of the firm vis-a-vis the market growth. Data has been collected over a period of five years starting from year 2000 to 2004, both inclusive. We do not find any evidence that the difference in the ownership structure affect the firm performance. We acknowledge the fact that the study has had a huge dependency on publicly available information while collecting data.