scholarly journals Changing shareholding pattern in companies established prior to liberalization and the impact

2018 ◽  
Author(s):  
vinita pimpale
Keyword(s):  
Industrial Structure ◽  
Listed Companies ◽  
Business Organizations ◽  
Firm Level ◽  
Public Companies ◽  
Indian Economy ◽  
Before And After ◽  
The Government ◽  
Indigenous Entrepreneurs ◽  
The Impact

ABSTRACTChanging shareholding pattern in companies established prior to liberalization and the impact.Prior to 1991, the Indian economy was averse to policies that diluted the government’s control over the companies established in the country. A closed economy of sorts, the Indian economy perceptibly faced the pressure of global forces as well as internal turbulence's resulting in negativeeconomic indicators. As a result of the same, the government yielded to the situation and began the process of liberalization. The 1980s saw the advent of these policies through the delicensing of certain key industries which was then followed by the introduction of the New Economic Policywhich laid down the framework of liberalization as a formal reform in the economy in 1991.Clusters of business groups in India formed around ethnic, religious and social communities, for example, the Marwaris of Rajasthan formed businesses in Bengal and elsewhere; the Gujaratis in the West, the Chettiars in the South, etc. There is a vast diversity in the Indian economy,comprising of listed as well as unlisted, regional as well as foreign, private as well as public companies. The indigenous entrepreneurs in the Indian markets have now become veterans in their respective industries. Over the years, from government monopolies to family owned businessstructures to the emergence of corporations’, the shareholding patterns in the Indian industrial fora have transitioned through various stages.This research study tracks the movements in the shareholding patterns of Indian Companies spanning over a period from the 1980s up to 2015 to examine the impact of liberalization as an economic policy. The key objectives of this study are:1. To describe the evolution of India’s listed companies’ shareholding structure.2. To study the evolution of India’s industrial structure at the firm level as a result ofthe reforms.3. To analyze the industrial composition by ownership before and after reforms.This study offers a captivating kaleidoscope of shareholding trends across the companies in the different industries over the years. This study is organized as follows:Section 1: Overview of evolution in Company incorporations in India pre and postliberalization.Section 2: Description of trends in Industrial Structure in Non-Government Companies’incorporations and the corresponding sectorial contributions to the GDP.Section 3: Study of various ownership patterns in Indian Companies and the trends therein.Section 4: Analysis of shareholding structures in listed companies (SENSEX.)Section 5: Study of impact of foreign investments in the Indian Corporate Sector.Section 6: Brief comparison of the shareholding patterns of business organizations as well as liberalization policies among the BRIC nations.The last unit of the study sets out the findings, interpretations, conclusions and recommendations on the subject.

Is a Corruption Crackdown Really Good for the Economy? Firm-Level Evidence from China

2020 ◽  
Author(s):  
Zhiyuan Chen ◽  
Xin Jin ◽  
Xu Xu
Keyword(s):  
Negative Impact ◽  
Foreign Firms ◽  
Private Firms ◽  
Firm Level ◽  
Personal Connections ◽  
Before And After ◽  
Short Run ◽  
The Government ◽  
Negative Impacts ◽  
The Impact

Abstract We study the impact of anticorruption efforts on firm performance, exploiting an unanticipated corruption crackdown in China’s Heilongjiang province in 2004. We compare firms in the affected regions with those in other inland regions before and after the crackdown. Our main finding is an overall negative impact of the crackdown on firm productivity and entry rates. Furthermore, these negative impacts are mainly experienced by private and foreign firms, while state-owned firms are mostly unaffected. We present evidence concerning two potential explanations for our findings. First, the corruption crackdown may have limited bribery opportunities that helped private firms operate. Second, the corruption crackdown may have interfered with personal connections between private firms and government officials to a greater extent than institutional connections between state-owned firms and the government. Overall, our findings suggest that corruption crackdowns may not restore efficiency in the economy, but instead lead to worse economic outcomes, at least in the short run (JEL L2, M1, O1).

Impact of Dividend Tax Change on the Payout Policy of Indian Companies

2019 ◽  
Vol 20 (5) ◽  
pp. 1282-1291
Author(s):  
Sanjay Dhamija ◽  
Ravinder Kumar Arora
Keyword(s):  
Negative Impact ◽  
Payout Policy ◽  
Tax Law ◽  
Dividend Payout ◽  
Inside Ownership ◽  
Regulatory Changes ◽  
Before And After ◽  
The Government ◽  
The Impact ◽  
Dividend Tax

The article examines the impact of regulatory changes in the tax on dividends on the payout policy of Indian companies. The tax law was recently amended to levy tax on dividends received by large shareholders. As the promoters group is the largest shareholder, this is expected to have a negative impact on the payout policy of companies. Furthermore, companies with larger promoter holdings have a higher motivation to reduce their payout. The study covers 370 companies present in the BSE 500 Index and compares the dividend payout of the companies before and after the introduction of tax levy. The study finds that the newly introduced tax indeed caused a shift in the dividend policy of companies, particularly those companies which have high levels of inside ownership. The findings have significant implications for companies, investors and the government.

scholarly journals Analysis of financial development and industrial structure transformation

2021 ◽  
Vol 235 ◽  
pp. 02080
Author(s):  
Shuwei Harold Sun ◽  
Allen Wang ◽  
Huan Yu
Keyword(s):  
Financial Development ◽  
Industrial Structure ◽  
High Tech ◽  
Financial Industry ◽  
Estimation Model ◽  
Moment Estimation ◽  
Investment Structure ◽  
The Government ◽  
Role Of The Government ◽  
The Impact

This paper uses the relevant data from 2008 to 2017 to construct a multiple linear regression equation, and uses the generalized moment estimation model to explore the impact of financial development on industrial structure adjustment from the perspective of financial scale and efficiency. The results show that financial efficiency can promote the rationalization and upgrading of industrial structure, but the impact of financial scale on industrial structure is two-sided. Increasing financial scale can increase the amount of industrial financing and accelerate the process of industrial structure upgrading. However, blindly increasing the supply of loans will lead to the birth of bad investment, thus failing to promote the rationalization of industrial structure. Based on this, this paper puts forward some policy suggestions, such as promoting the diversified development of the financial industry, improving the imbalance of financial development in various provinces, promoting the reasonable investment structure and the development of high-tech industry, and giving full play to the role of the government.

scholarly journals Agency costs and corporate governance mechanisms in Indian state-owned companies and privately owned companies - A panel data analysis

2014 ◽  
Vol 11 (4) ◽  
pp. 8-17
Author(s):  
Stuart Locke ◽  
Geeta Duppati
Keyword(s):  
Corporate Governance ◽  
Agency Costs ◽  
Panel Data Analysis ◽  
Agency Cost ◽  
Open Market ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
The Government ◽  
Suitable Reference ◽  
The Impact

This paper explores the impact of corporate governance reforms and changing ownership patterns of core public sector enterprises. A number of reforms were introduced by the Government of India in 1991, and intensified in 2004 with the aim of improving efficiency and financial performance across state owned enterprises. The core state enterprises provide a unique opportunity to consider two aspects of the reforms. First, did the reforms have an impact, and second, is there a distinguishable difference between wholly government owned and partially-public shareholding enterprises? The public listed companies provide a suitable reference point for comparison. A comprehensive dataset of 123 SOEs and matching listed public companies for 10 years was collected for the study. A regression approach is adopted with agency cost as the dependant variable and several corporation-specific governance variables. Size and industry are the independent variables. The findings of the study indicate that the agency costs for mixed ownership models tend to be lower than those of the concentrated state-owned firms because they operate in an open market with the market facing the regulatory framework of a competitive environment.

The Impact of Globalization on Development of MSMEs

2021 ◽  
Vol 2 (1) ◽  
pp. 46-60
Author(s):  
Rama Mohana Rao Katta ◽  
Chandra Sekhar Patro
Keyword(s):  
Small And Medium Enterprises ◽  
National Level ◽  
Work Conditions ◽  
Firm Level ◽  
Market Opportunities ◽  
Growing Economy ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Globalization has been a significant force in the development of the market and economic environments. The micro, small, and medium enterprises (MSMEs) need to focus on technological capabilities to face the competition in the globalized market. They have to analyze the market opportunities in the rapidly growing economy as well as emerging markets. The aids of a globalized and digital economy depends to an excessive extent on favourable business environments and healthy competition. The performance of MSMEs depends on accessibility to various strategic resources like abilities, technical know-how, innovativeness, and finance. Thus, it is imperative to consider the factors influencing work conditions firm level, and the strategies formulated at the national level are organized to local business perspectives. This paper examines the global scenario of MSMEs, the impact of globalization, the role of MSMEs in India, the growth perspectives of MSMEs during the pre-and post-globalization period, the critical challenges, and the role of the government in encouraging and developing MSMEs.

The chief financial officer (CFO) profile and R&D investment intensity: evidence from listed European companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gianluca Ginesti ◽  
Rosanna Spanò ◽  
Luca Ferri ◽  
Adele Caldarelli
Keyword(s):  
Listed Companies ◽  
Master Of Business Administration ◽  
Chief Financial Officer ◽  
Corporate Investments ◽  
Firm Level ◽  
Content Type ◽  
Doctor Of Philosophy ◽  
The Impact ◽  
D Investment ◽  
Practical Implications

PurposeThis study aims to investigate whether the characteristics of the chief financial officer (CFO) have an impact on the intensity of the corporate research and development (R&D) investment.Design/methodology/approachBased on hand-collected data for the CFOs of a sample of the largest European listed companies for the period 2013–2016, this study uses regression analyses to test empirically the association of CFO education, CFO gender and CFO age with R&D investment intensity.FindingsThe presence of female CFOs, CFOs with a Master of Business Administration (MBA) or Doctor of Philosophy (PhD) degree and older CFOs is positively associated with the intensity of R&D investment.Research limitations/implicationsThis study relies on some observable characteristics of CFOs and focuses on large listed companies.Practical implicationsThe results of this study may help investors, stakeholders and practitioners to understand better which type of CFO characteristics are more likely to result in higher firm-level R&D investment intensity.Originality/valueThis study offers the first insights into the impact of CFOs, as the most prominent C-suite executives, on the level of corporate investments in R&D activity.

Application of Data Envelopment Analysis and Key Characteristics of Greek Agro-Firms

2015 ◽  
Vol 6 (2) ◽  
pp. 31-39 ◽  
Author(s):  
Christos Lemonakis
Keyword(s):  
Agricultural Sector ◽  
Empirical Studies ◽  
Data Envelopment ◽  
Firm Level ◽  
Efficiency Assessment ◽  
Time Period ◽  
Key Characteristics ◽  
The Government ◽  
Financial Characteristics ◽  
The Impact

The purpose of this study is to investigate key characteristics for the competitiveness in Greek agro-firms during the time period 2004 to 2011, based on firm level financial data. The study attempts to determine the firms' efficiency as well as the impact of exporting activity in agro-firms competitiveness, and more specifically in fisheries, farms with livestock and farms with fruits, vegetables and cereals. Although many empirical studies have been conducted relative to manufacturing firms' financial characteristics, limited research exists on agro-food firms. The use of DEA method seems to be a very useful tool for efficiency assessment and identification of best practices in firms' management for both managers and the Government as well in order to facilitate the growth of the agricultural sector.

Lending relationships, credit ratings and bank loan spreads: evidence from Indonesian listed companies

2020 ◽  
Vol 16 (4) ◽  
pp. 455-479
Author(s):  
Yane Chandera ◽  
Lukas Setia-Atmaja
Keyword(s):  
Fixed Effects ◽  
Credit Ratings ◽  
Listed Companies ◽  
Bank Loan ◽  
Least Squares Regression ◽  
Firm Level ◽  
Content Type ◽  
Lending Relationships ◽  
Loan Spreads ◽  
The Impact

PurposeThis study examines the impact of firm-bank relationships on bank loan spreads and the mitigating role of firm credit ratings on that impact.Design/methodology/approachThe study sample consists of Indonesian publicly listed companies for the period 2006 to 2016; bank-loan data was extracted from the Loan Pricing Corporation Dealscan database. For the degree of firm-bank relationships, the data on each loan is manually computed, using five different methods taken from Bharath et al. (2011) and Fields et al. (2012). All of the regression analyses are controlled for the year fixed effects, heteroscedasticity, and firm-level clustering. To address the endogeneity issues, this study uses several methods, including partitioning the sample, running nearest-neighbour and propensity score matching tests, and using instrumental variables in two-staged least-squares regression models.FindingsIn line with relationship theory and in opposition to the hold-up argument, this study finds that lending relationships reduce bank loan spreads and that the impact is more noticeable among non-rated Indonesian firms. Specifically, each additional unit in the total number of years of a firm-bank relationship and the number of previous loan contracts with the same bank are associated with 7.34 and 9.15 basis-point decreases, respectively, in these loan spreads.Practical implicationsCorporations and banks should maintain close, long-term relationships to reduce the screening and monitoring costs of borrowing. Regulators should create public policies that encourage banks to put more emphasis on relationships in their lending practices, especially in relation to crisis-prone companies.Originality/valueTo the best of the authors’ knowledge, this is the first study to examine the impact of lending relationships on bank loan spreads in Indonesia. The study offers insights on banking relationships in emerging markets with concentrated banking industries, underdeveloped capital markets and prominent business-group affiliations.

scholarly journals DAMPAK MEA TERHADAP INVESTASI, EKSPOR-IMPOR DAN PENGGUNAAN TENAGA KERJA INDONESIA

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Nur Khasanah ◽  
Prihartini Budi Astuti ◽  
Ika Neni Kristanti
Keyword(s):  
Economic Integration ◽  
Secondary Data ◽  
Economic Community ◽  
Foreign Investors ◽  
Before And After ◽  
The Government ◽  
Asean Economic Community ◽  
The Impact ◽  
Sample Pair ◽  
Made In

This research attempts to analyze the effects of the economic integration of the ASEAN Economic Community (AEC) which was implemented since 2015. The impact analyzed is focused on investments made in Indonesia, both investments made by foreign investors and domestic investors. Another thing that was also highlighted in this study was the flow of exports and imports. This was also investigated because one of the policies contained in the agreement of the ASEAN economic community was the elimination of international trade barriers. In addition to the two things above, researchers also analyzed the influence of the ASEAN economic community on the use oflabor in Indonesia. The data analyzed in this study are secondary data obtained from the relevant agencies. The method used in this study is a different sample pair test. This method is used because the research conducted is comparing the conditions of investment, export-import and use of labor in Indonesia before and after the economic integration of the ASEAN Economic Community. At the end of this study, researchers will provide recommendations to the government regarding what should be done by the government to optimize investment activities, exports and use of local labor in Indonesia.

scholarly journals Impact of goods and service tax (gst)

2017 ◽  
Vol 7 (2) ◽  
pp. 312-316
Author(s):  
Nithiya K
Keyword(s):  
Indian Economy ◽  
The Government ◽  
The Impact

A tax is not a voluntary payment or donation, but an enforced contribution imposedby government under the names of toll duty, custom, excise, subsidy or other name. The Goods andService Tax (GST) which was introduced from July 2017 by the Government of India is a valueadded tax, which is the only indirect tax that directly affects all sectors and sections of our economy.In this paper I have dealt in detail the impacts of GST, though its various objectives andfeatures in strengthening the Indian economy. Further the impact of Integrated Goods and ServiceTax (IGST),have been discussed at length in benefitting the individuals, importers, exporters andorganization.

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