Indian Journal of Finance

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Theoretical Underpinnings of the Determinants of Firm Performance: A Literature Review


Affiliations
1 Research Scholar, IBS Hyderabad, The ICFAI Foundation for Higher Education, 156/157, Donthanapally, Shankarapalli Road, Hyderabad-501 203, Telangana, India
2 Professor, IBS Hyderabad, The ICFAI Foundation for Higher Education, 156/157, Donthanapally, Shankarapalli Road, Hyderabad-501 203, Telangana, India
3 Assistant Professor, IBS Hyderabad, The ICFAI Foundation for Higher Education, 156/157, Donthanapally, Shankarapalli Road, Hyderabad-501 203, Telangana, India

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Literature survey on the determinants of firm performance indicates that earlier studies offered no consensus over the subject to confirm the factors and direction of these factors which determine firm performance. We maintained that the results for firm performance at an aggregate level are not valid for the firms classified based on industries. We also argued that firms cannot increase their performance indefinitely with increase in their sizes. After a certain point, firm performance decreases with the increase in firm size. Furthermore, in view of the recent economic reforms, it is essential to evaluate the role of business groups in India.

Keywords

Firm Performance, Business Groups, Emerging Markets

G30, G32, G34, M10, M21

Paper Submission Date : January 27, 2015 ; Paper sent back for Revision : June 8, 2015 ; Paper Acceptance Date : July 27, 2015.

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  • Theoretical Underpinnings of the Determinants of Firm Performance: A Literature Review

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Authors

Kanaiyalal Shantilal Parmar
Research Scholar, IBS Hyderabad, The ICFAI Foundation for Higher Education, 156/157, Donthanapally, Shankarapalli Road, Hyderabad-501 203, Telangana, India
V. Nagi Reddy
Professor, IBS Hyderabad, The ICFAI Foundation for Higher Education, 156/157, Donthanapally, Shankarapalli Road, Hyderabad-501 203, Telangana, India
Yogesh Kumar Chauhan
Assistant Professor, IBS Hyderabad, The ICFAI Foundation for Higher Education, 156/157, Donthanapally, Shankarapalli Road, Hyderabad-501 203, Telangana, India

Abstract


Literature survey on the determinants of firm performance indicates that earlier studies offered no consensus over the subject to confirm the factors and direction of these factors which determine firm performance. We maintained that the results for firm performance at an aggregate level are not valid for the firms classified based on industries. We also argued that firms cannot increase their performance indefinitely with increase in their sizes. After a certain point, firm performance decreases with the increase in firm size. Furthermore, in view of the recent economic reforms, it is essential to evaluate the role of business groups in India.

Keywords


Firm Performance, Business Groups, Emerging Markets

G30, G32, G34, M10, M21

Paper Submission Date : January 27, 2015 ; Paper sent back for Revision : June 8, 2015 ; Paper Acceptance Date : July 27, 2015.




DOI: https://doi.org/10.17010/ijf%2F2015%2Fv9i9%2F77194