Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

Large Shareholder Activism in Corporate Governance in Developing Countries: Evidence from India

Abstract: Most of the existing evidence on the effectiveness of large shareholders in corporate governance has been restricted to a handful of developed countries, notably the UK, US, Germany and Japan. This paper provides evidence on the role of large shareholders in monitoring company value with respect to a developing and emerging economy, India, whose corporate governance system is a hybrid of the outsider-dominated market-based systems of the UK and the US, and the insider-dominated bank-based systems of Germany and Japan. The picture of large-shareholder monitoring that emerges from our case study of Indian corporates is a mixed one. Like many of the existing studies, while we find blockholdings by directors to increase company value after a certain level of holdings, we find no evidence that institutional investors, typically mutual funds, are active in governance. We find support for the efficiency of the German/Japanese bank-based model of governance; our results suggest that lending institutions start monitoring the company effectively once they have substantial equity holdings in the company and that this monitoring is reinforced by the extent of debt holdings by these institutions. Our analysis also highlights that foreign equity ownership has a beneficial effect on company value. In general, our analysis supports the view emerging from developed country studies that the identity of large shareholders matters in corporate governance.

Urbanization, energy use and greenhouse effects in economic development

Abstract: This paper seeks an exploratory assessment of the possible global greenhouse consequences of economic development in general and urbanization in particular, especially insofar as they relate to changing patterns of energy use. First, the nature of the relationship between urbanization and increased resource use is elaborated upon, and the impact of the development transition upon levels of energy consumption is empirically analysed in a multiple regression framework, using cross-national variations in urbanization and other development indicators to estimate a fixed-effects model of the determinants of energy usage. The same set of hypothesized determinants is then used to measure their contribution to estimated greenhouse gas (GHG) emissions for the full set of countries. Next, we focus upon the subsample of developing countries to study the effects of urbanization upon their evolving profiles of energy use, disaggregated by final use sector and fuel type, and estimate the magnitude of the greenhouse effects attributable to each of these component fuel uses. Finally, we present some of the implications of the results for policies toward urbanization and energy strategies for developing countries in the context of global environmental management imperatives.