| Using a unique data set, this study analyzes the financial and operating performance of State-Owned, Family-Owned, and Private Shareholder-Owned firms in India, in the period following the economic liberalization of the 1990s. Finance theories suggesting that firms should experience differences in performance based on (i) the organizational structure and corporate culture (ii) the agency costs in firms (iii) the presence of soft budget constraints, and (iv) contracting issues between owners and managers, are tested using samples of the three groups of firms. After adjusting for firm characteristics, we find that Family-Owned firms outperformed the other two groups, providing support for the existing theories. |
Updated 03/19/2014