Executive SummaryThe economic backdrop of most nations remains dominated by family businesses. Family control is common in publicly traded Indian companies. Such controlling families often hold large shareholdings and for the most part have representation at the top management level as well as on the board. Consequently, an overarching question that emerges is whether and how family ownership, management, and governance affect corporate performance.This article attempts to discern the relationship between family involvement in business (FIB) and financial performance (FP) of companies included in the S&P BSE 500 Index during the period 2006–2010. In addition, an attempt has been made to examine the difference in accounting and market measures of FP for family companies (FCs) vis-à-vis non-family companies (NFCs). A two-way fixed-effects panel model was used to examine the FIB–FP relationship with fixed effects being dummy variables for each year of the sample and dummy variables for each two-digit National Industrial Classification (NIC) code. Finally, to test for the ‘reverse causation’ between FIB and FP, the instrumental-variable—two-stage least-squares (IV-2SLS) regression was applied.The results confirm that FCs are a predominant form over a number of industries in a large sample, S&P BSE 500 Index. In addition, founding families are often involved in the actual management of the companies. Controlling for company-specific, industry affiliation, and corporate governance variables, the cross-sectional longitudinal analyses show that FIB is associated with superior FP. Furthermore, FP is higher for FCs vis-à-vis NFCs. Based on the market performance measure, FC appear to be better performers with higher outside board representations. On further analysis of the profile of independent directors, it was observed that they had a diverse background and expertise. The impact of firm size and unaffiliated blockholdings on FP was found to be significantly negative. Finally, the estimates from the IV-2SLS were found to be consistent with the preliminary results that FIB is associated with better FP.This article joins the evolving concurrence on the diversity and heterogeneity of family businesses by differentiating between family-owned, family-managed, and family-governed companies. It distinguishes itself from previous studies on the subject, as it uses different typologies based on the extent of FIB as well as presents multiple theoretical perspectives rather than a mono-theoretical view to empirical findings in the present study. Keeping this distinction in perspective is imperative for family business researchers, practitioners, and policymakers.
This paper considers an often forgotten relationship, the time delay between a cause and its effect in economies and finance. We treat the case of Foreign Direct Investment (FDI) and economic growth, -measured through a country Gross Domestic Product (GDP). The pertinent data refers to 43 countries, over 1970-2015, -for a total of 4278 observations. When countries are grouped according to the Inequality-Adjusted Human Development Index (IHDI), it is found that a time lag dependence effect exists in FDI-GDP correlations. This is established through a time-dependent Pearson 's product-moment correlation coefficient matrix. Moreover, such a Pearson correlation coefficient is observed to evolve 1 arXiv:1905.01617v1 [q-fin.GN] 5 May 2019 from positive to negative values depending on the IHDI, from low to high. It is "politically and policy "relevant" that the correlation is statistically significant providing the time lag is less than 3 years. A "rank-size" law is demonstrated. It is recommended to reconsider such a time lag effect when discussing previous analyses whence conclusions on international business, and thereafter on forecasting.
Theoretical and applied work on corporate governance systems point to the importance of the structure of ownership and control in setting the background for corporate governance issues that con arise in reality. The present study discerns ownership pattern for BSE-200 Index companies for six financial years, i.e., 2000-6. The results suggest ·hat Indian companies typically maintain their shareholding pattern over time. This is especially true for the overall nroportion of shores held by promoters and non-promoters. Although Indio hos a tradition of equity ownership by nromoters, a phenomenon of institutional izotion of wealth wherein institutional investors especially foreign institutional ;r.vestors ore consolidating their holdings is quite apparent. Evidence shows insignificant shareholding of individuals ::1d a foll in the proportion of outstanding shores held by institutions comprising banks, insurance companies, and ::orporate bodies from 200 7 to 2006. Further, the ownership concentration both in terms of the fraction of shores held :::y the largest shareholders and Herfindol index increased for the overage company over the study period. The paper ::oncf udes by suggesting that efforts to raise corporate governance standard needs to be accompanied by a stronger ego/ enforcement so as to bring stability in its capitol markets and foster investor confidence.
This paper examines how Novak's concept (Novak, J. D. 1998. Learning, Creating and Using Knowledge: Concept Maps as Facilitative Tools in Schools and Corporations. Lawrence Erlbaum, Mahwah, NJ) of “meaningful learning” can help teachers using an “experiential” approach to teaching problem structuring methods (PSMs) help students acquire an understanding of how these methods might aid group decision making. Experiential learning is seen as a necessary foundation for the building of a student's understanding of PSMs if they are to fully appreciate the potential of the techniques. It is argued that if the affective mode of functioning (relating to moods, feelings, and attitudes) is triggered, the student is more likely to choose to engage in meaningful learning, and thereby gain an enhanced appreciation of how the methods work. An example of a causal mapping workshop is evaluated, with the findings, although limited in their validity for generalisation, pointing to a clear and direct positive link between meaningful learning and understanding by the learner.
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