Foreign investors, foreign directors and corporate diversification: An empirical examination of large manufacturing companies in India

Kannan Ramaswamy, Li Mingfang

Research output: Contribution to journalArticle

23 Scopus citations

Abstract

This study is among the first to systematically evaluate the role of foreign ownership (volume of ownership and board representation) on self-interested strategizing behavior of organizational managers. Building on agency theory, strategic management and organization theory literatures, it argues that the volume of foreign ownership is unlikely to have any bearing on the extent of unrelated diversification that managers pursue. However, the level of foreign representation on the board of directors is likely to dampen such strategies. Results from the empirical examination set in India provide support for this line of reasoning. Contributions, implications and future extensions are explored.

Original languageEnglish (US)
Pages (from-to)207-222
Number of pages16
JournalAsia Pacific Journal of Management
Volume18
Issue number2
DOIs
StatePublished - Jan 1 2001
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

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