Foreign and Domestic Ownership, Business Groups and Firm Performance: Evidence from a Large Emerging Market

Douma, Sytse; George, Rejie; Kabir, Rezaul

doi:10.2139/ssrn.685783

Cited by 221 publications

(388 citation statements)

References 71 publications

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“…They can also transfer other resources needed to expand abroad internally, such as knowledge. The literature suggests that firms may internationalise by leveraging group resources (Douma et al 2006;Guillén 2003;Tan and Meyer 2010;Yiu et al 2005). Besides accessing the internal pool of resources, synergy between different subsidiaries of an Indian business group can also facilitate internationalisation of the firm; for instance, synergies between the subsidiaries of Tata group (Mukherjee and Radhakrishnan 2002).…”

Section: India: Domestic Capital Marketmentioning

confidence: 99%

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

Buckley

2017

Manag Int Rev

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The rise of multinational enterprises from emerging countries (EMNEs) poses an important test for theories of the multinational enterprise such as internalisation theory. It has been contended that new phenomena need new theory. This paper proposes that internalisation theory is appropriate to analyse EMNEs. This paper examines four approaches to EMNEs-international investment strategies, domestic market imperfections, international corporate networks and domestic institutions-and three case studies-Chinese outward FDI, Indian foreign acquisitions and investment in tax havens-to show the enduring relevance and predictive power of internalisation theory. This analysis encompasses many other approaches as special cases of internalisation theory. The use of internalisation theory to analyse EMNEs is to be commended, not only because of its theoretical inclusivity, but also because it has the ability to connect and to explain seemingly desperate phenomena.

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Section: India: Domestic Capital Marketmentioning

confidence: 99%

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

Buckley

2017

Manag Int Rev

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“…In India's case, the role of business groups in economic and business development has been particularly highlighted (Carney, 2008;Douma, George, & Kabir, 2006;Khanna & Palepu, 2000), historically arising when licensing and state restrictions were the norm (Shiba & Masahiro, 1997). The role of diversified (conglomerate) business groups, usually family owned and closely held, is a persistent characteristic of Indian growth (Chacar & Vissa, 2005).…”

Section: Identifying Relevant Informal Institutions In the Bric Countmentioning

confidence: 99%

“…However, as noted above, a distinctive feature is the prevalence of conglomerate business groups entailing common ownership and management by family members; firms are separate legal entities, listed separately with their own set of shareholders, but the family controls the strategic direction and regulates firm transfers (Douma et al, 2006). It has been widely argued that business groups have filled institutional voids such as imperfections in markets for capital, products, and managerial talent (Khanna & Palepu, 2000).…”

Section: Formal Corporate Governance Structures In Bric Countriesmentioning

confidence: 99%

The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared

2010

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This paper argues that the role of informal institutions as well as formal ones is central to understanding the functioning of corporate governance. We focus on the four largest emerging economies: Brazil, Russia, India, and Chinacommonly referred to as the BRIC countries. Our analysis is based on the Helmke and Levitsky framework of informal institutions and focuses on two related aspects of corporate governance: firm ownership structures and property rights; and the relationship between firms and external investors. We argue that for China and some states of India, "substitutive" informal institutions, whereby informal institutions substitute for and replace ineffective formal institutions, are critical in creating corporate governance leading to enhanced domestic and foreign investment. In contrast, Russia is characterized by "competing" informal institutions whereby various informal mechanisms of corporate governance associated with corruption and clientelism undermine the functioning of reasonably well set-out formal institutions relating to shareholder rights and relations with investors. Finally Brazil is characterized by "accommodating" informal institutions which get around the effectively enforced but restrictive formal institutions and reconcile varying objectives that are held between actors in formal and informal institutions.

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“…The law and economics approach (e.g., (La Porta et al, 2000;La Porta, Lopez-de-Silanes, Shleifer, & Vishny, 1998)) puts the focus on the fact that the ability to enforce financial contracts and thus increase the effectiveness of governance depends on institutional characteristics (Djankov, Hart, McLiesh, & Shleifer, 2008;Douma, George, & Kabir, 2006;Hoskisson, Cannella, Tihanyi, & Faraci, 2004). Further, it is stated that in order to complete the frame already set by the agency theory it is necessary to merge it with institutional theory (Douma et al, 2006;Kaplan, Martel, & Stromberg, 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Further, it is stated that in order to complete the frame already set by the agency theory it is necessary to merge it with institutional theory (Douma et al, 2006;Kaplan, Martel, & Stromberg, 2003). There are two principal strings of institutional theory fitted to the analysis: a) the first, origins in political science (North, 1990) and b) the second is derived from organizational theory (Scott, 2002).…”

Section: Literature Reviewmentioning

confidence: 99%

Governance and Enterprise Restructuring: The Case of Macedonia

Apostolov

2011

Transit Stud Rev

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Abstract:This paper is a case study of the Republic of Macedonia (Southeast Europe), which focuses on examining governance and enterprise restructuring.Governance and enterprise restructuring is already defined indicator in EBRD's studies and transition reports, measuring the effective corporate governance and corporate control exercised through domestic financial institutions and markets, fostering market-driven restructuring. As of the beginning of the transition process, governance and enterprise restructuring remains in the center, as essential pillar, that moves forward the society towards developed market economy.The data used in this article are analyzed with an econometric regression model, which as employed in this study examines the interrelationships between governance and enterprise restructuring and set of policies that influence the governance patterns. JEL Classifications: G30, G32, G38; L33; O11; P31

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Foreign and Domestic Ownership, Business Groups and Firm Performance: Evidence from a Large Emerging Market

Cited by 221 publications

References 71 publications

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

Internalisation Theory and Outward Direct Investment by Emerging Market Multinationals

The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared

Governance and Enterprise Restructuring: The Case of Macedonia

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