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Demystifying the Role of Multiple Blockholders in Family Firms

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Prof. Poonam Singh, National Institute of Industrial Engineering (NITIE), Mumbai had delivered a guest seminar on ‘Demystifying the Role of Multiple Blockholders in Family Firms’. The seminar was attended by TAPMI members consisting of faculty and Ph. D. students.

Date: December 18, 2017 (Monday)
Time: 04:00 PM to 05:00 PM
Venue: Conference Room, Dr. T.M.A. Pai Block

Using a large sample of blockholder buy and sell trades, the paper examines how trades by a diverse class of blockholders affect stock market returns in Indian family firms. The paper considers multiple blockholder categories, like pressure resistant, pressure sensitive from the literature and introduces a new category of blockholders, namely, Promoter blockholder. The study distinguishes between family-owned, family-managed and professionally managed family firms and shows how the presence of multiple blockholders affects governance in these two contexts. It contributes to the corporate governance literature by testing whether the 2009 regulatory intervention in India requiring the disclosure of insider-ownership information, makes monitoring by blockholders more effective.