Disentangling the Concentration-Performance Nexus: An Empirical Study of Indian-Listed Firms Across Diverse Industries

This study examines the relationship between industry concentration and financial performance among Indian-listed firms across various industries. Using a sample of over 2,078 from 29 distinct sectors, Herfindahl-Hirschman Index for each company was calculated categorized into high, medium low-concentration categories. To ensure representativeness data reliability, 1,583 small companies with HHI scores below 0.6 were excluded analysis at stage comparative after calculating industry-wise concentration. The remaining 495 classified compared using Student Welch t-test three groups: high versus medium, low low. findings revealed heterogeneous relationships ratios. For instance, return on equity (ROE) assets (ROA) demonstrated positive levels, whereas liquidity solvency ratios showed mixed results. Operating performance, dividend valuation displayed an inconclusive pattern. These results provide valuable insights complex concentration-performance nexus offer theoretical managerial implications. contributes to existing literature by addressing research gaps inconsistencies concerning in context emerging markets. Additionally, offers information policymakers, investors managers seeking better understand impact firm performance.