The Impact of State Regulation on Corporate Governance and Performance in India: Future Prospects for Multinational and Local Enteprises

This paper seeks to shed light on certain major aspects of public policy and the performance of business enterprises in India. First, it highlights the effectiveness of the public policies pursued and their asymmetric effects on corporate governance and performance of multinational and local enterprises in India. Second, it suggests that the so called ‘threat’ of large scale disruption of local enterprises through intensified competition from multinational enterprises is not in the cards in the short run. Third, it argues that apart form public policy aspects, the success of some well-known multinational and local enterprises have centered around their ability to adapt their structures to match the asymmetries in the institutional context, taking cognizance of the changes in markets in recent times.