Econometric Analysis of Corporate Governance in India: Firm Performance and Dividend Policy in India

Econometric Analysis of Corporate Governance in Indiaempirically examines the influence of corporategovernance framework on firm performance and dividendpolicy, for an unbalanced panel of Indian corporatefirms. The book finds that after controlling forobserved firm characteristics and unobserved firmheterogeneity, the shareholding by institutionalinvestors and directors affect firm performance. Alsothe equity ownership by dominant group influencesfirm-performance only in case of managerialownership. However, there is no evidence in favor ofendogeneity in ownership structure. Unobserved firmheterogeneity is found to be significant. Inanalyzing the dividends payout behavior, the authorsuggests an empirical model to explain the dividendpayout behavior, with the help of firmâ¿¿s financialstructure and investments opportunities along withdividends, earnings, and ownership structure.