Abstract
This paper presents an empirical examination of financial performance and governance of 84 Indian Central Public Sector Enterprises (CPSEs). Currently, most CPSEs are 100% owned by Government of India; however, there are a few which are listed on the Stock Exchange. The shareholding for the listed CPSEs includes both public holders and other CPSEs which acquire significant blocks.
The Government of India (GOI) has signalled an intention not to reduce its own holding below 51% and this is well below the average holding which is currently above 80%. As the GOI pursues an active campaign to raise funds through further sales of shareholdings this study is timely in considering the returns achieved and whether the governance structures put in place have impacted on the returns of CPSEs.
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