Billionaire Wealth, Firm Performance and Financial Crisis: An Empirical Analysis for India

Abstract

Employing data for 2001–2012, the article analyzes the factors impacting the wealth of Indian billionaires and the performance and innovative activity of firms which these billionaires represent. The analysis indicates that billionaires in rent-thick sectors have higher wealth levels, on average. As well, the evidence also supports lower wealth for self-made and entrepreneurial billionaires. The findings also reveal that self-interested actions by billionaires tend to raise agency costs, which, in turn, dampens profitability and firm value. Finally, there is evidence which suggests a tendency on the part of billionaires to block innovative activity. JEL Classification: D31, N35, P52

Exploring Wealth Dynamics: A Comprehensive Big Data Analysis of Wealth Accumulation Patterns

“…The systematic billionaire wealth factors were not considered in the univariate tests. Age was disregarded, and economic activity might potentially be important [4]. A study constructed a comprehensive metric of wealth inequality on a global scale, utilizing Forbes magazine's roster of billionaires, and subsequently conducted a comparative analysis of its impact on economic growth to the effects of income inequality and poverty [5].…”