Capital contribution, insider ownership and firm performance: evidence from Indian IPO firms
by Bhawana Jain; Sangeetha Gunasekar; P. Balasubramanian
International Journal of Corporate Governance (IJCG), Vol. 11, No. 1, 2020

Abstract: Several studies have explored the nonlinear relationship between insider ownership and post-IPO firm performance, whereas the inter-relationship among pre-IPO cash contribution, insider ownership and firm performance has not been investigated. Our study attempts to do so for an emerging economy, India using panel data of 199 IPO firms for the sample period of 2007 to 2018. Results indicate that there is a nonlinear relationship between insider ownership and post-IPO firm performance with lower ownership levels indicating positive impact and higher ownership levels indicating negative impact. Further, the study finds that pre-IPO cash contribution of owners has a long-term increasing negative impact, though these results significantly differ across varying levels of insider ownership. The study controls for endogeneity in the variables.

Online publication date: Tue, 26-May-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Corporate Governance (IJCG):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com