Exploring the Relationship Between Ownership Structure and Firm Performance of Nifty 500 Companies: A GMM Approach.

This study explores a crucial topic in corporate governance and finance: the complex relationship between ownership structure and firm performance. Ownership structure, which is the allocation of ownership rights among different stakeholders, has an enormous impact on a company's overall profitability, strategic decision-making, and operational effectiveness. The study period is 10 years (2015-2024) based on 4380 firm-year observations of firms listed on NSE 500 index. It takes into account three performance metrics: return on equity (ROE), return on assets (ROA), and Tobin's Q (TQ). Four main ownership groups are analyzed: Indian promoters (IP), foreign promoters (FP), institutional ownership (IO), and government ownership (GO). Using panel data regression models, the empirical findings suggest that Indian promoters mainly have a significant relation with all the profitability models, while foreign promoters only show a positive relation in the ROA and ROE model. Firm size also significantly impacted all the models, while no relation is found between sales growth and leverage on firm performance. [ABSTRACT FROM AUTHOR]