In this paper, we investigate the impact of promoters and institutional investors' equity ownership on the firm performance in the Indian context. Using a sample of 1583 firms during 2010–2019, our results suggest a positive relation between promoter ownership and firm performance, supporting the alignment effect, where the interests of promoters and managers align in the same direction. On the one hand, our results support the global advantage hypothesis in that the foreign institutional investors (FIIs) positively impact the firm performance, implying that the FIIs are vigilant shareholders, and actively monitor the firm performance. On the other hand, we reject the hometown advantage hypothesis since the domestic institutional investors (DIIs) like banks and other financial institutions are found to have negative relation with firm performance. Overall, we conclude that shareholding pattern does affect the firm performance. Our results are insensitive to various robustness tests.

中文翻译：

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持股模式会影响公司业绩吗？来自印度的证据

在本文中，我们调查了发起人和机构投资者的股权对印度背景下公司业绩的影响。使用 2010-2019 年期间 1583 家公司的样本，我们的结果表明发起人所有权与公司绩效之间存在正相关关系，支持对齐效应，即发起人和管理者的利益朝着同一方向对齐。一方面，我们的结果支持全球优势假设，即外国机构投资者（FII）对公司业绩产生积极影响，这意味着 FII 是警惕的股东，并积极监控公司业绩。另一方面，我们拒绝家乡优势假设，因为发现银行和其他金融机构等国内机构投资者（DII）与公司业绩呈负相关。总体而言，我们得出结论，股权模式确实会影响公司业绩。我们的结果对各种稳健性测试不敏感。