Promoters of family firms have increased their stake in their NSE and BSE listed companies over the last decade, findings of a research study released here today revealed.
Indian School of Business (ISB)'s Thomas Schmidheiny Centre for Family Enterprise conducted the research study "Family Businesses: Promoters' Skin in the Game 2001-2017," which reveals the pattern of increasing stake of promoters in NSE and BSE listed family firms.
The study, conducted by Dr Nupur Pavan Bang, Professors Kavil Ramachandran and Anierudh Vishwanathan of the Centre and Professor Sougata Ray of IIM Calcutta, provides insights into the ownership pattern of family firms in comparison to the non-family firms and also explores the heterogeneity within family firms.
It is a first-of-its kind research study that presents and analyses the trends in equity ownership by various classes of shareholders for 4,615 firms listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) of India, across different ownership categories, for the period 2001- 2017, according to ISB.
The research study attempted to give a bird's eye view of the shareholding pattern of listed Indian firms.
Dr Nupur Bang said, "We found that promoters of family firms have increased their stake in their companies over the last decade, while State owned Enterprises (SOEs), Other Business Group Firms (OBGFs) and Standalone Non-family Firms (NFs) have witnessed a decline in promoter shareholding."
Promoters of MNCs have also increased their stake in their Indian subsidiary, probably indicating their belief in the 'India story.'
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