Completed Projects | On-Going Projects
A number of sponsored research projects have been completed by the ISID. The sponsors of projects include Ministry of Finance and Planning Commission of the GOI, United Nations Center on Transnational Corporations (now part of UNCTAD), European Commission (EU), Asian Development Bank (ADB), International Labour Organisation (ILO), Food and Agriculture Organisation (FAO), Indo-Dutch Programme on Alternatives in Development (IDPAD) and the National Commission on Rural Labour. Besides, individual members of the faculty pursue their own research interests.
- Impact of Foreign Direct Investment on Selected Sectors of India: A Comparative Study with Selected Countries
The study made a comparative study of policies and procedures and actual inflows of FDI in select industries and a few countries in Asia and Latin America viz., China, Brazil, Mexico, Malaysia and Thailand. The study focussed upon information technology, transport equipment, other engineering industries, food processing sector and drugs & pharmaceuticals which offer a mix of export potential, technology intensity and employment generation and which have also accounted for a significant portion of FDI inflows into India in the new policy period.
The principal investigators of the study are: K.S. Chalapati Rao, K.V.K Ranganathan and M.R. Murthy. Final report of the study was submitted to the Office of the Economic Advisor, Department of Industrial Policy & Promotion, Ministry of Commerce and Industry in March 2007.
- Import Intensity of India’s Exports in Liberalized Trade Policy Regime
There are divergent views on effects of trade liberalization on economic growth and employment generation. However, this is not the case with export expansion and improvement in competitiveness. The impact of trade liberalization is closely related to initial level of economic openness. If initial level of economic openness is more, growth of output, exports, employment and competitiveness will be more positive. But it may not be prudent to attribute higher growth to trade liberalization alone. Available studies on various countries are not conclusive on the effects of trade liberalization on employment generation. The objective of the study is to assess empirically the impact of trade liberalization on output, exports and employment generation and competitiveness in India’s manufacturing sector.
The results of the study reveal that import intensity of exports in manufacturing sector has increased and so is the competitiveness. Liberalization has led to expansion in output and employment, particularly in labour-intensive and export-oriented industries. Many of the capital-intensive industries also witnessed rise in output and competitiveness. Liberalization policies have thus brought about a favourable impact on Indian industries. But trade reforms must be implemented and sequenced suitably, as a part of broader effective growth strategy to enhance economic growth in India.
The principal investigators of the study are: T.P. Bhat, Atulan Guha, Mahua Paul and Partha Pratim Sahu. Final report of the study was submitted to the Department of Commerce, Ministry of Commerce and Industry in March 2007.
- Export-orientation of Foreign Manufacturing Affiliates in India
Foreign firm’s contribution to India’s exports continued to be marginal whereas their export contribution has grown significantly in other developing countries like China, Malaysia, Singapore, Chile, Hungary, Poland and Czech Republic. For example, foreign affiliates contributed just about 4.5 per cent total exports in 1990 in the case of India. What explains this poor export performance of FDI in Indian case?
The present research project has estimated the export intensity and shares of foreign firms for 17 Indian industries over 1991–2005 and analyzed factors that determine export-orientation of foreign manufacturing affiliates in India to explain foreign firm’s least biases towards export activities.
The empirical result also suggests that the export-orientation of foreign firms has changed positively following the adoption of an outward looking regime since 1991. The new policy regime seems to have stimulated exports activities of foreign affiliates by producing an export-friendly business atmosphere. Nevertheless, the Indian government needs to be both proactive and cautious so far as the nature and composition of exports, the propensity for which is keenly opted for by the foreign affiliates. The overwhelming emphasis upon exporting mineral products following preliminary processing is an ominous sign that potentially reduces the beneficial impacts from FDI to the host country.
It has been observed that foreign affiliates in India have significantly lower export intensities in R&D- and advertising-intensive industries. The host country policies may target foreign firms operating in these industries so as to encourage them to adopt exports by providing supportive incentives.
The study was initiated internally by Jaya Prakash Pradhan and completed in August 2006.
- Conditions of Work and Promotion of Livelihood in the Unorganised Sector
The study envisages preparation of papers on the following aspects of work and employment in the unorganised sector.
- Magnitude and structure of employment in different categories; self-employed and wage labour, distribution by industry and occupation, rural-urban locations, gender and social categories such as castes and so on.
- Working conditions of wage labourers in the unorganised sector in terms of physical environment, conditions of employment such as hours of work and holidays, wages, social security, grievance settlement procedure, legislative and institutional arrangement for ensuring minimum conditions of work in the unorganised sector.
- Levels and sources of livelihood of self-employed workers, access to inputs, credit and markets, programmes for promotion of livelihoods and their effectiveness.
Background papers, based on secondary material and past studies, were prepared and submitted to National Commission for Enterprises in the Unorganised Sector (NCEUS) and have been used as major input in the final report of the Commission. T.S. Papola was the project Director and Jesim Pais, Partha Pratim Sahu and Rathi Kant Kumbher are the principal researchers.
- Labour Regulation in Indian Industry: A Study of its Impact on Growth, Investment and Employment
The project consists of studies, consultations, discussion and publications with a view to contributing to the on-going debate and policy making on the subject, by especially examining the impact of existing labour regulation on growth, investment, employment and labour standards in Indian industry. The main aspects of the project are as follows:
- Labour Policy and Legal Framework in India: A Review; C P Thakur
- Labour Regulation in Small Enterprises: Coverage and Impact; V N Prasad
- Labour Regulation and Its Impact: A Review of Studies and Documents; T S Papola, G S Mehta & Vinoj Abraham
- Effectiveness of Labour Regulations in Indian Industry; Jesim Pais
- Labour Regulation, Industrial Growth and Employment: A Study of Recent Trends in Andhra Pradesh; D N Reddy
- Impact of Labour Regulation on Growth, Investment and Employment: A Study of Maharashtra; K R Shyam Sundar
- Labour Regulation and Industrial Development in Uttar Pradesh: Some Recent Trends; Alakh N Sharma & V Kalpana
- Labour Regulation and Industrial Development in West Bengal; Debdas Banerjee
- Labour Regulation, Labour Flexibility and Labour Reforms in Europe: Some Perspectives with Possible Lessons for India; A V Jose, Pietro Garibaldi and K R Shyam Sunder
- Labour Regulation in Indian Industry: Towards a Rational and Equitable Framework; T S Papola, Jesim Pais and Partha Pratim Sahu
Ten detailed research papers have been prepared under the programme and integrated into a report incorporating a framework for a fair and efficient labour regulation in India conducive to growth and employment generation and observance of minimum labour standards in Indian industry.
The study is being undertaken in collaboration with the International Institute for Labour Studies (IILS), Geneva. The European Union (EU) has sponsored this research project. T.S. Papola, ISID and A.V Jose, IILS are the project Directors.
- Defining the Role of Government in Transnationlization Efforts of Indian SMEs: A Case Study of Indian Pharmaceutical Industry
Over the decades, small and medium enterprises (SMEs) have emerged as a strong player in the Indian pharmaceutical industry, although they are now facing increasing national and international competition. Enlarging market focus and improving firm-specific competitive capabilities through transnationalization, thus, turn out to be critical strategies for Indian pharmaceutical SMEs. The present study, commissioned by Department of Scientific and Industrial Research, Ministry of Science and Technology, critically discussed the role of government polices to promote internationalization efforts by small pharmaceutical firms. It also analyzed their internationalization growth in terms of export performance and outward FDI as compared to large firms during the period of economic reforms and undertook empirical analysis of the various determinants of their internationalization process.
The pharmaceutical industry in India is found to be largely dominated by small and medium-sized firms. The small firms are operating at a disadvantageous position as compared to their large counterparts. The research shows that in-house R&D capability, import of capital goods and machineries, inter alia, are crucial determinants of export activities by SMEs. The case study of select pharmaceutical SMEs suggests that individual firms undertake different strategies such as product innovation, quality improvement, collaborative R&D with government and agencies to successfully operate in the international market. Pharmaceutical SMEs are also undertaking outward-FDI to improve and enhance their overall competitiveness in the global market.
The existing government polices to promote export and other forms of internationalization strategies are found to be grossly inadequate. A large number of pharmaceutical SMEs, are either not aware of different government schemes or are not getting any substantial benefits from such initiatives. The present study identifies specific intervention areas, such as availability of low cost finance for technological up-gradation and quality improvement, information on overseas markets, improvement in crucial physical and R&D infrastructure, promotion of pharmaceutical SMEs clusters, special and discriminatory incentives schemes for pharmaceutical exporting SMEs and so on, which need urgent policy attention to facilitate Indian pharmaceutical SMEs to stand on their own in the present competitive business environment.
Final report of the study was submitted to Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India. Jaya Prakash Pradhan and Partha Pratim Sahu are the principal researchers.
- High-tech Industries, Employment and Global Competitiveness
High-tech, knowledge-based industries like information technology, biotechnology, and pharmaceuticals have played an important role in the transition of the Indian and Chinese economies – the two largest and fastest developing economies in the world today. This process has been characteristically marked by the expanding reach of multinational enterprises, flows of foreign direct investment, unprecedented advancement of information and communication technologies (ICT) and knowledge-based industries, and infusion of ICT across the entire spectrum of industries and activities.
This interdisciplinary book offers an in-depth understanding of the behaviour of firms in these industries, analysing the strategies they adopt in a globally competitive environment, the role they have played in ushering in the growth revolution in China and India, and the contribution they have made to the nature and growth of employment. Findings are based mostly on data collected through fieldwork and surveys. The book also discusses the emerging nature of scientific and technological developments like nanotechnology, novel materials, spintronics, and quantum computers, suggesting that in the future, knowledge and technology will become the real sources of wealth for nations.
This book will be of particular interest to those in the fields of economics, international business, and industrial and technological development management.
The book is edited by Prof. S.R. Hashim, ISID & Vice-President, Forum for Global Knowledge Sharing and Prof. N.S. Siddharthan, Honorary Professor, Madras School of Economics and Member-Secretary, Forum for Global Knowledge Sharing.
It is being published by Routlege India, Taylor and Francis, Group, New Delhi.
India and China in WTO: Building Complementarities and Competitiveness in the External Trade Sector, project report submitted to the Planning Commission, Government of India, 2005.
Employment Implications of Growing Exports: With special focus on Services Exports, the study report was submitted to the Ministry of Commerce & Industry, 2005.
Two sub-Chapters: 'Economic History of Tobacco Production in India' and 'Policy Interventions: Supply-side Actions' for 'Collaborative Approaches for Comprehensive Tobacco Control in India' project for the Health Related Information Dissemination Amongst Youth (HRIDAY). This is a sponsored project of the Ministry of Health & Family Welfare, Government of India and Centers for Disease Control & Prevention, USA , 2004. Final report of project has come out as a publication Report on Tobacco Control in India', K. Srinath Reddy, and Prakash C Gupta (eds.), Ministry of Health & Family Welfare, 2004.
- Review of Existing Policies and Legislation for Micro and Small Enterprises (MSEs) in Uttar Pradesh, 2004. The project was sponsored by the ILO.
Study for Working out the Details of Steel Demand in Oil, Gas, Water and Slurry Transmission Segments, 2004. The study was sponsored by the Steel Authority of India Ltd.
Livelihood Strategies for Sikkim, 2003. The project report was submitted to the UNDP.
Savings and Capital Formation of the Indian Private Corporate Sector: An Attempt at Explaining Recent Trends, project report submitted to the Union Ministry of Finance, 2003.
Savings and Investment of the Indian Private Corporate Sector during the'Nineties, sponsored by the Union Ministry of Finance, 2002.
India's External Trade during the 'Nineties: Some Aspects - An Analysis of Customs House and Company Data, a project report sponsored by the Planning Commission, November 2002.
Beyond the Washington Consensus - Governance and the Public Domain in Constrasting Economies: The Cases of India and Canada, a joint project of the Robarts Centre for Canadian Studies, York University, Canada; Institute for Studies in Industrial Development and Centre for Research in Rural and Industrial Development (CRRID), 2001.
Global Capital Flows and the Indian Stock Market, a project sponsored by the Indo-Dutch Programme on Alternatives in Development (IDPAD), 1999.
Privatization in India - Social Effects and Restructuring, country study sponsored by the International Labour Organisation (ILO), 2000.
Design of Social Safety Net for the State of Madhya Pradesh, sponsored by Asian Development Bank (ADB), 2000.
Madhya Pradesh - Implementation of Public Sector Restructuring Programme: A Poverty Impact Assessment Study, sponsored by the Asian Development Bank (ADB), 1998.
Foreign Investment Approvals and Implementation Status: A Review (August 1991- December 1994), sponsored by the Union Ministry of Finance, 1995.
Foreign Investment Approvals: An Analysis (August 1991 to July 1993), sponsored by the Union Ministry of Finance, 1994.
ISID Development Indices: Monitoring Stock Exchange Trends, sponsored by the Union Ministry of Finance, 1994.
India's Trade Policy and Export Performance of Industry, sponsored by the Indo-Dutch Programme on Alternatives in Development (IDPAD), 1994.
Economic Liberalisation and Indian Agriculture, sponsored by the Food and Agriculture Organisation (FAO), 1994.
Directory of Statistics of International Investment & Production in India, prepared for the United Nations Centre on Transnational Corporations, 1993.
Small and Medium-sized Transnational Corporations, TCMD Division of United Nations Department of Economic and Social Development, 1992.
Political Economy of India, 1992.
Directory of Joint Stock Companies in India, 1990: A Review, a report submitted to the Department of Company Affairs, 1992.
India's Imports and Exports: Some Insights (An Analysis of Daily Trade Register Data), a reported submitted to the Union Ministry of Finance, 1991.
Exchange Rates, Trade Policy and Tariff Structure, a reported submitted to the Union Ministry of Finance, 1991.
Directory of Statistics of International Investment and Production in India, prepared for the United Nations Centre on Transnational Corporations (UNCTC), 1990.
Patterns in Indian Agricultural Development: A District-Level Study, sponsored by the Planning commission, 1989.
Public and Private Corporate Sectors in India: A Study in Characteristics and Trends, project report submitted to the Standing Conference of Public Enterprises (SCOPE), New Delhi, 1988.
Joint Sector Enterprises in India: Rationale, Growth and Performance, 1995.
Employment Generation and Rural Labour.
Patterns of Rural Industrialisation and Non-farm Employment in India.
Rural Labour Markets and Incidence of Poverty.
Export Promotion and Indian Joint Ventures, 1990.
Small Scale Sector and Big Business, a study prepared under the ICSSR Research Programme, Regulation of Private Corporate Sector In India, 1984.
Functioning of the Industrial Licensing System, a study prepared under the ICCSR Research Programme, Regulation of Private Corporate Sector In India, 1983.
Ownership and Control Structure of the Indian Press, Report submitted to the Second Press Commission, 1981.
On-going Research and New Research Initiatives
- Crony Capitalism and Contemporary India
In his speech at the inauguration of the ISID Campus on 1st may 2007, the Prime Minister raised the queries - Are we encouraging crony capitalism? Is this a necessary but transient phase in the development of modern capitalism in our country? Are we doing enough to protect consumers and small businesses from the consequences of crony capitalism? At other fora he also expressed his concern about the cancer of corruption and issues relating to corporate social responsibility. The comments attracted considerable media attention for quite some time, and evoked sharply divergent responses.
As a part of the Institute’s ongoing research on the Indian corporate sector, a Symposium on Crony Capitalism has been envisioned by the ISID in the first week of October 2007 with the idea of getting together academics, policy makers, jurists, journalists, and other concerned citizens for initiating a serious public debate on the following questions:
- Has liberalization actually changed the relationship between businesses and Government functionaries and officials into an arms-length one, or do individual businesses still benefit from special relationships with those occupying positions of authority?
- Have the old concerns about concentrated economic power exercising a disproportionate influence in the determination of public policy priorities ceased to be of relevance because big business houses are now subject, in principle, to the pressures of market competition and vast areas of economic activity have been freed from entry restrictions?
- Are the new and more limited mechanisms of regulation and monitoring of private economic activity adequate for ensuring that such activity does not go against the general good?
- Given the propensity of those in authority to mobilize resources whether for organizational purposes or to satisfy the desire to accumulate wealth, have some newer avenues been brought into play and reliance on some existing ones increased?
- Is crony capitalism a transient phase as posed by the Prime Minister? What do the experiences of western market-based democracies suggest in this regard?
The proceedings of the Symposium will include presentations by members of the ISID faculty based on their research as well as expositions by a panel of eminent scholars. It is hoped that the discussion at the symposium will also throw up ideas about the areas on which research at the Institute can focus on in the future.
- Aid Salary Discrepancies and Development Workers Performance
The Institute has entered into collaboration with Massey University, New Zealand for undertaking a study on Aid Salary Discrepancies and Development Workers Performance. The study seeks to investigate the implications of salary discrepancies in technical cooperation, across a range of under-investigated contexts where development workers address some of the world’s most pressing poverty reduction challenges. The specific objectives are to:
- Innovate new micro measures of pay discrepancy, alignment and harmonisation
- Assess the motivational constructs of guilt, superiority, indignation, and withdrawal using reliable and valid (multi-item) measures
- Broaden the scope of criterion variables to include the job performance indicators job satisfaction, mental health/emotional resilience, and intentions to leave versus stay in the job (brain drain)
- Test for robust versus context-contingent links between (a) and (b)
- Test for linkages between (b) and (c), thereby linking pay discrepancy, alignment and harmonisation to individual work performance in technical cooperation projects
- Create a psychometrically sound instrument that allows for the motivational affects of pay discrepancy on work performance to be assessed in other settings
- Contribute to poverty reduction through enhancing the work performance of aid workers.
- Structural Changes, Industry and Employment in the India Economy Marco Economic Implications of the Emerging Pattern
The recent pattern of structural changes raises a few basic questions relating to sustainability of development process, on the one hand, and equity and employment, on the other. How far is the decline in the importance of agriculture without corresponding increase in the share of industry, particularly manufacturing, and growing importance of the services sector represents a sustainable pattern of development? Is it a reflection and consequence of greater integration of Indian economy in the world economy as part of the globalisation process, on the one hand, and changing nature of the industrial, particularly manufacturing, sector where its linkages with agriculture and services, rather than its size as such, assumes greater importance? With the stagnant share of industrial sector in the economy and its declining employment potential, will the services sector expand fast enough to provide employment to increasing labour force? Will such an expansion be induced by growth in the industrial sector or will take place independently? Or, will the industrial sector still be providing employment of an increasing magnitude, particularly in its unorganised segment? It may be noted that employment generating capacity of the output growth in manufacturing and construction sectors is many times higher in the unorganised than in the organised segment, while the differences between the two segments in this respect are much lower in most sub-sectors in the services, particularly in transport and finance.
The above and other related issues arising out of the on-going changes in the structure of output and employment in the Indian economy are not only interesting from the an analytical academic viewpoint, but have strategic implications for the sustainability and equity of economic growth.
A research programme submitted to the ICSSR for financial support.
- Linkages between large enterprises and the unorganised sector: A study of subcontracting relations
The objective of the study is to a) Examine the pattern and magnitude contractual relationships between large and small enterprises across different industry groups; b) Analyse the different types of linkages and their advantages and disadvantages to the unorganised sector enterprise; c)Examine the role played by sub-contractual relationships in employment generation; d) Evaluate positive contribution of linkages on labour standards, labour productivity, wage levels, technology and so on through a comparison of enterprises that are engaged in sub-contracts and other that are not; and e) Critically evaluate the policy and regulatory framework under which the subcontracting firms are operating and make suggestions.
The proposal was submitted to National Commission for Enterprises in the Unorganised Sector (NCEUS) for funding.
- SME Clusters in India: Identifying Areas of Intervention for Inclusive Growth
This project aims to propose a comprehensive policy approach toward promotion of small enterprise clusters. SME clusters are conceived to be the potential sites for gainful employment and growth in developing economies. However, official policies on small enterprises largely remain confined in the supply side issues like credit provisioning and those to providing some training and networking facilities. The basic objective of this project is to view these clusters from the perspective of demand in emerging markets both home and abroad and the role they can play in creating gainful employment that strengthens inclusive growth. The study would depend upon field surveys in different states in India besides secondary sources available so far on SME clusters. It would look into Indian SME clusters, their performances and potentials in the changing scenario of domestic and exports markets. The study aims to identify the common constraints in forward and backward linkages that SME clusters usually face, as well as infirmities, organizational and institutional hindrances that reproduce the ‘low road’. Study the experiences of SME clusters where they are vertically linked to one or more large enterprises and identify the reasons behind as well as modes of interdependence. And finally, specify areas of remedial interventions in the national, regional and local levels that help evolve a coordinated effort to build required capabilities of competitiveness.
We are approaching the Planning Commission for financial support.
- Survey of Corporate Governance in India
Regulators, policy makers and investor bodies could benefit from regular studies on the practical implications and efficacy of corporate governance provisions. Regular studies are also necessary because there is no single model of good corporate governance. Even if the form of corporate governance is the same, due to differences in ownership structures, legal provisions, level of shareholder awareness and knowledge, etc., country experiences could differ.
In spite of the well-recognised importance of the subject, there are very few in-depth studies on corporate governance practices in India. The Institute plans to take up a research programme on various aspects of corporate governance. It intends to operationalise it through a Survey of Corporate Governance. Broadly, the studies would aim at ascertaining the efficacy of the CG Code, identify the weaknesses and suggest measures to improve the associated rules and regulations within the overall objective of fostering healthy development of the Indian corporate sector and in the process improve the overall understanding of the sector.
Some of the topics that would be examined under the programme include:
- Ownership structure with emphasis on business groups and nature of controlling interests' shareholdings;
- Composition of company boards with emphasis on independent directors and Audit, Remuneration and other Board Committees;
- Protection of minority shareholder interests in buyouts, delisting, mergers, restructuring, etc.;
- Nature, significance and trends in related party transactions including inter-corporate investments and loans;
- Governance issues in privatised/partially divested public enterprises and FDI companies; and
- Responsiveness of companies to other stakeholder interests.
These issues would be analysed at various levels of dis-aggregation like size, ownership categories, industry, region, age of the company, extent of internationalisation, etc.
The study is being taken up internally by the faculty.
- Internationalization Process of Indian Pharmaceutical Industry
The pharmaceutical industry is perhaps among a few sectors in the Indian economy whose foundation is built on the process of internationalization. During the first stage of internationalization—over 1947–69—inward FDI and imports served as the initial channels of overseas business links for the industry. Since then the internationalization profile of the industry has undergone significant changes overtime. Now, domestic pharmaceutical companies are leading this process by adopting a host of new strategies like exports, green field direct investment abroad, acquiring overseas companies, contract manufacturing and research and strategic alliances with global firms. The global growth of Indian pharmaceutical industry from a mere importer and distributor of drugs and pharmaceuticals to an innovation-driven cost-effective producer of quality drugs has been contributed by a host of strategic government policies in the past.
The study tries to explore the role of government policies in the internationalization of Indian pharmaceutical industry, different forms of internationalization and their impact on the competitiveness and growth of the industry. It also examines the competitive strength of the industry relative to global peers on pharmaceutical value-added, productivity, research and development and trade performance.
The study is being taken up internally by the faculty.
- Indian Multinationals in Global Economy
Outward FDI has emerged as the most preferred route of internationalization for Indian companies in the 1990s. The numbers of both green field investment and overseas acquisition by Indian companies have grown dramatically in the recent past. The present study would like to investigate three issues—(i) firms from which sectors are investing trans-border, (ii) where are they investing, and (iii) what implications such activities have for Indian economy. It would analyze the causes and motivations of Indian firms becoming multinationals. The emphasis would be on country-specific factors like policy regime with respect to trade, foreign investment and technology, sectoral characteristics like market structure and domestic competition, sectoral government policies, product characteristics, suitability to the country’s factor endowments, etc., and firm-specific factors like firm size, technology, exports, and so on. Different types of motivations for multinational activities involving horizontal FDI (market accesses, efficiency seeking, strategic asset seeking, natural asset seeking, and gaining insider status in trading blocks) and vertical FDI (accessing raw materials, establishing trade-supporting infrastructure) will receive attention. The changing characteristics of Indian multinationals will be discussed with reference to the TWMNE Theory proposed on multinationals from developing countries.
The study would undertake detailed case studies of three industries, namely Indian Software Industry (one from services sector), Pharmaceutical Industry (one from manufacturing sector), Indian Petroleum and Gas Sector (one from natural resource sector) and case studies on top three Indian multinationals to further understand the phenomenon. It is hoped that this study would derive strategic policies for India to suitably manage its emerging multinationals to derive maximum economic gain.
The study is being taken up internally by the faculty.
- Changing Pattern of Corporate Ownership and Implications for Monitoring Company Managements
The basic purpose of stock market is to provide capital for investment and liquidity for the investors. The need for such capital is expected to increase with size of the enterprise. For large companies to emerge and function effectively, there is a need to pool risk capital which individual entrepreneurs cannot bring in on their own or with the help of relatives, friends and acquaintances. Theories emerging from the experience of US and UK demonstrate that in modern corporations management and ownership are divorced from each other because of widely dispersed shareholding. Evidence from other countries, however, differs significantly. There is an extensive and growing body of literature to understand the relationship between ownership pattern and corporate management.
Traditionally shareholding pattern of large Indian companies is characterised by low promoter holdings and substantial stakes of public financial institutions. In the post-liberalisation period, entry of foreign institutional investors and mutual funds and Indian companies being permitted to raise capital from abroad and the compulsions for private managements to ward-off takeover threats, freedom for companies to have much higher level of foreign equity and the policy thrust to let companies raise capital directly from investors are the factors which could influence the ownership patterns. Theoretically, large investors are expected to help monitor managements better while dispersed shareholding would be to the advantage of professional managers. High promoter stake, however, has dual implications. On the one hand, since promoters in most cases are also in the management, it would align the interests of managements with that of other shareholders. The high promoters stakes may however, be used to hurt minority shareholders’ interests.
The study seeks to trace the changes in the shareholding pattern of listed companies in the context of the role of stock market as a provider of risk capital and as a monitoring institution. Shareholding data of more than 2,500 Bombay Stock Exchange listed companies has been collected and is being examined at the categories of promoters, institutional investors, other corporate bodies and individual shareholders.
The study is being taken up internally by the faculty.
- Under the media centre, it is proposed to undertake research on the following aspects:
- The growth and Development of the media industry: The Growth of Balaji Telefilms and its competitive outcomes for the development of the television industry in India: A historical study of the Balaji Media Business House and factors leading to its prominence and its survival strategies.
- Advertising war and struggle for markets/ Advertising marketing strategies and search for spaces.
- National Media Policy and Economic and Cultural Imperatives.
- Looking at the growth of the FM network its policy implications, business model and issues of social responsibility and implication for growth of a democratic culture.
- Representation of industry in the context of national development: A semiotic analysis of three major English dailies during the decade of the 90’s.
- The Emergence of the Business Channels a study of structure, content and relationship with the industry.
It is also proposed to organise Seminar on Media Industry: Issues and Concerns in December 2007. The issues involved are: i) Issue of Growing Media Monopolies; ii) Increasing Entry of Global Players and its Economic Implication for the National and Regional Players; iii) Government Policy and Its Implications; iv) Issues related to Media Structure and Management; and v) Implication of Media Economics on the Changing Pattern of Content of: a) News, b) Serials, c) Reality Shows, d) Sport Broadcasts, e) Films.