Domestic Institutional Ownership and Firm Value: A Study of NSE 500 Companies.

The paper studies the impact of Domestic Institutional Ownership (DIO) upon firm performance in India using panel data for NSE 500 companies from 2010 to 2016. The study finds DIO to have a positive impact on Tobin's Q in panel regressions-fixed effects after using controls such as firm age, size, leverage, marketing intensity, foreign institutional ownership and promoter ownership. The study also tests the impact of Mutual Fund Ownership (MFO) and the impact of Banks, Development Financial Institutions (DFI), Insurance companies' (BFII) ownership separately and found MF has a positive impact on Tobin's Q. The study observed that all variables DIO, MF and BFII had no impact on Return on Assets (ROA) but BFII is found to have a negative impact on Return on Equity (ROE). The study found a positive impact of Mutual Funds (MFs) and a negative impact of 'Banks, FIs and Insurance companies' on firm performance in India. The paper contributes to the empirical literature on institutional ownership and firm performance in emerging economies. It has important implications for firms, investors, corporate policy makers and researchers particularly, in India. [ABSTRACT FROM AUTHOR]