State as Investor and State as Owner: Consequences for Firm Performance in India

摘要: A common assumption is that firms owned by the state perform poorly compared with in private sector. Most studies make such claims are problematic, because they based on analysis of publicsector operating as either monopolies or duopolies. This makes it difficult to disentangle effects ownership and monopoly firm performance. In this article, we argue influences performance, measured RETURN ON ASSETS SALES, only when property rights devolve fully state. Data from 1,100 listed Bombay Stock Exchange analyzed, a spline regression model advocated for cross-sectional data where linearity exists within but not across categories. Controlling number firmand environment-specific factors, conclude which does have majority shareholding indeed outperform has shares, though former, too, do yield positive returns assets sales.