Determinants of Growth and Sustainable Development of Indian Firms
Determinants of Growth and Sustainable Development of Indian Firms

Summary/Abstract: The irresolute studies on pattern of ownership and its bearing on the profitability, sustainable development and growth of firms has made it pertinent to delve deeper into the learnings about the determinants of ownership impacting the growth and sustainable development of Indian firms. Firms are characterized by a network of associations for financing, capital structure, managerial ownership, and compensation. Business antiquity indicates that while these relationships often involve conflicts and differing opinions, nearly all parties align with the all-encompassing goal of achieving the robust business performance. Prior research has explored the associations among different parties within a firm and their impact on performance through the lens of agency philosophy. However, the results from these studies remain inconclusive due to disparities in how ownership and performance are measured. A comparative sample of companies from the four key industry classifications was taken for this study to catch the various determinants of ownership pattern thereby affecting their sustainability. Ownership was captivated taking foreign ownership, director ownership, institutional investors, Indian and foreign promoters. The results showed that good financial performance, women directors’ shareholding, dual structure of leadership and grander boards have an optimistic impact thus impacting sustainable development and growth of Indian firms.

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