Does ownership always matter? Evidence from the Indian banking industry

Jayati Sarkar, Subrata Sarkar, Sumon Bhaumik

Research output: Contribution to journalArticlepeer-review


Existing empirical evidence on the ownership-performance issue is weighted towards the property rights hypothesis that private enterprises are superior to public enterprises. However, very few studies examine a developing country in which the strong link between the market for corporate control and the efficiency of private enterprises assumed by the property rights hypothesis may not be satisfied. Our study of the Indian banking industry confirms our expectation that, in the absence of well-functioning capital markets, there may not be significant differences in the performance of private and public enterprises. Our analysis highlights the importance of creating appropriate institutions prior to pursuing privatization in developing countries.
Original languageEnglish
Pages (from-to)262-281
Number of pages20
JournalJournal of Comparative Economics
Issue number2
Publication statusPublished - Jun 1998


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