Econometric Analysis of Corporate Governance in India

Econometric Analysis of Corporate Governance in India empirically examines the influence of corporate governance framework on firm performance and dividend policy, for an unbalanced panel of Indian corporate firms. The book finds that after controlling for observed firm characteristics and unobserved firm heterogeneity, the shareholding by institutional investors and directors affect firm performance. Also the equity ownership by dominant group influences firm-performance only in case of managerial ownership. However, there is no evidence in favor of endogeneity in ownership structure. Unobserved firm heterogeneity is found to be significant. In analyzing the dividends payout behavior, the author suggests an empirical model to explain the dividend payout behavior, with the help of firm's financial structure and investments opportunities along with dividends, earnings, and ownership structure.