Capital structure and performance: Evidence from a transition economy on an aspect of corporate governance

This paper examines the relationship between the levels of debt in the capital structure and performance for a sample of Indian firms. Existing theory posits a positive relationship; however, analysis of the data reveals the relationship for Indian firms to be significantly negative. The structure of capital markets in India, where both short-term and long-term lending institutions are government-owned, is hypothesized to account for the finding of this relationship, and it asserted that corporate governance mechanisms which work in the West will not work in the Indian context unless the supply of loan capital is privatized.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/45524/1/11127_2004_Article_133280.pd

Foreign Ownership and Profitability: Property Rights, Strategic Control and Corporate Performance in Indian Industry

This study examines the influence of foreign ownership on the performance of fmtis operating in India. Foreign ownership is categorized according to the control exercisable at different levels of ownership. These categories are, in turn, determined by the institutional structure of the Indian environment which helps define define the property rights accruing at different levels of ownership. Firms' performance is measured as return on sales and return on assets. The results show that, after controlling for a variety of fin-n and environment-specific factors, only when property rights devolve to foreign owners, at ownership levels providing unambiguous control at 51 percent, do firms in which there is foreign ownership display relatively superior performance. Implications for managers of foreign firms contemplating investments, either de-novo or augmenting already-existing stakes, in India and for policy are also discussed.http://deepblue.lib.umich.edu/bitstream/2027.42/39454/3/wp64.pd

Duverger's Law and the Size Of the Indian Party Sytem

Duverger's law postulates that single-member plurality electoral systems lead to two-party systems. Existing scholarship regards India as an exception to this law at national level, but not at district level. This study tests the latter hypothesis through analysis of a comprehensive dataset covering Indian parliamentary elections in the period 1952—2004. The results show that a large number of Indian districts do not conform to the Duvergerian norm of two-party competition, and that there is no consistent movement towards the Duvergerian equilibrium. Furthermore, inter-region and inter-state variations in the size of district-level party systems make it difficult to generalize about the application of Duverger's law to the Indian case. The study concludes that a narrow focus on electoral rules is inadequate, and that a more comprehensive set of explanatory variables is needed to explain the size of the Indian party system even at the district level

India in 2017

The year 2017 saw the ruling Bharatiya Janata Party extend its electoral dominance by winning major state elections. The BJP was less successful, however, in containing contentious politics and vigilantism by right-wing groups. It was also a tumultuous year for the Indian economy as it strove to recover from the shock of major reforms. The Supreme Court issued landmark verdicts likely to have weighty implications for Indian society in the years to come. The Indian government could also claim credit for foreign policy successes vis-à-vis China, Pakistan, Israel, and the ICJ