FOREIGN AND DOMESTIC OWNERSHIP, BUSINESS GROUPS, AND FIRM PERFORMANCE: EVIDENCE FROM A LARGE EMERGING MARKET

摘要

We adopt a multi-theoretic approach to investigate a previously unexplored phenomenon in extant literature, namely the differential impact of foreign institutional and foreign corporate shareholders on the performance of emerging market firms. We show that the previously documented positive effect of foreign ownership on firm performance is substantially attributable to foreign corporations that have, on average, larger shareholding, higher commitment, and longer-term involvement. We document the positive influence of corporations vis-d-vis financial institutions with respect to domestic shareholdings as well. We also find an interesting dichotomy in the impact of these shareholders depending on the business group affiliation of firms.