Manuscript received 29.01.08; final version received 07.12.08.
AFFILIATION AND FIRM PERFORMANCE: EVIDENCE FROM INDIAN BUSINESS GROUPS
Article first published online: 13 APR 2010
© 2010 The Author. Journal compilation © 2010 Blackwell Publishing Ltd and The University of Manchester
The Manchester School
Volume 78, Issue 3, pages 183–200, June 2010
How to Cite
GHOSH, S. (2010), AFFILIATION AND FIRM PERFORMANCE: EVIDENCE FROM INDIAN BUSINESS GROUPS. The Manchester School, 78: 183–200. doi: 10.1111/j.1467-9957.2009.02142.x
- Issue published online: 13 APR 2010
- Article first published online: 13 APR 2010
Using data on a sample of Indian firms from 1996 to 2006, we examine the effect of group affiliation on firm performance. After controlling for the differences in firm size, growth opportunities and leverage, the findings indicate that group affiliation exerts a salutary impact on firm performance, measured in terms of adjusted Q or return on assets. Moreover, the evidence indicates that tunnelling is not an important factor driving the valuation and profitability effect of group affiliation.