Family Businesses: Promoters’ Skin in the Game 2001-2017

The ownership pattern of listed businesses in India is fairly concentrated, especially
in the case of family firms, SOEs and MNCs. While this has significant positive effects, there is
also a need to keep close vigil on their governance practices. Some of the recent incidents such
as large scale presence of non-performing assets and promoter-institutional collusions to divert
public funds call for developing closer and more transparent governance mechanisms in the
country. This is critical for the benefit of creating and sustaining healthy family businesses.