期刊名称：Acta Universitatis Sapientiae: Economics and Business
电子版ISSN：2360-0047
出版年度：2020
卷号：8
期号：1
页码：39-52
DOI：10.2478/auseb-2020-0003
语种：English
出版社：Sciendo
摘要：Considering the positive relationship between ownership and fi rm performance in the corporate fi nance literature, the paper aims to investigate the effect of ownership structure on the risk associated with the fi rm. Portfolio theories state that an investment with a high return is expected to be associated with high risk; so, it can be argued that ownership should have a positive relation with risk too. However, another explanation is that since large shareholders, such as promoters and fi nancial institutions, have a signifi cant stake in fi rms, in developing countries like India they will avoid excess risk taking, and so there should be a negative relationship between ownership and risk associated with fi rms. Analysing Nifty-500 companies for the period of 2006/07–2015/16, the study has found that Indian blockholders are in general risk-averse. Results also suggest that profi tability and growth opportunities have negative effects on risk, which again establishes the positive association between ownership structure and profi tability.
