Page 18 - research-at-iimv-june-01-2022-v3
P. 18
Chakrabarti, A., & Krishnan, K. (2021). Change in Illiquidity of Family Firms with
Institutional Pressure: Evidence from India. American Business Review, 24(2),
173-197.
This paper investigates the impact of the family business on illiquidity in an emerging market and how it evolves
with regulatory changes. The study uses panel data multiple regression on a sample of 25,418 observations on
3,606 firms from India within nine years from 2006 to 2014. The study finds that family firms have significantly
higher illiquidity compared to non-family firms. Moreover, family businesses have successfully resisted the
institutional pressure to decrease illiquidity and have also defied these coercive pressures to increase the
illiquidity of family businesses finally. The study also found heterogeneity in the behaviour of family businesses
based on their ownership characteristics.
PAGE 12