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Abstract
This research examines the impact of foreign-ownership on the corporate governance and disclosure policies of films. MNCs operate across different countries with different corporate governance regimes, which will often deviate from corporate governance practices in the home country of MNCs. Thus MNCs have to manage multiple economic, legal, political and cultural environments. This paper aims to analyze difference in corporate governance and disclosure practices among films owned by foreign owner (MNC subsidiaries) and local owner (domestic firms). These research findings suggest that subsidiaries of MNCs are no better in disclosure practices than domestic Indian firms.
Key Words : Corporate governance, Disclosure, Clause 49, MNC subsidiaries, Globalization, Domestic firms
Firms having multinational presence such as subsid - lanes of Multinational Coiporations (MNCs) have their parent firm in other country, have operations in more than one country and may also be listed in the host country. Such subsidiaries of MNCs are influenced by the parent firm in home country to a great extent. As such, host country has domestic firms originated and listed in the host country as well as MNC subsidiaries, operated and listed in the same legal institutional environment. As the regulatory environment in the host country is the same for both groups i.e. domestic firms and subsidiaries of MNCs, it is possible that subsidiaries of MNCs internalise some aspects of disclosure practices of their parent company.
MNCs subsidiaries operate across different countries with different corporate governance regimes, which will often deviate from corporate governance practices in the MNC home country. MNCs have to thus manage multiple economic, legal, political and cultural environments externally as well as complex networks of knowledge and resource flows internally (Volkmar, 2003). The question is whether firms with foreign ownerships have better behavior in their disclosure policies compared to domestic firms. Hence, this research intends to investigate empirically whether MNC subsidiaries have better corporate governance and disclosure policies compared to domestic films listed in India.Using firms across different sectors listed m Bombay Stock Exchange (BSE), tins research study aims to analyze difference in corporate governance and disclosure practices among firms owned by foreign owner (MNC subsidiaries) and local owner (domestic firms). The findings can shed light on the governance and disclosure practices of MNC subsidiaries and domestic...