Impact of ownership on the financial performance of VRL Logistics Limited Hubli- An assessment

The significance of ownership characteristics and accounting performance measures i.e. ROA and ROE could be explained by the fact that the fundamental evaluation of companies, measured by, its financial indicators such as (ROA and ROE) are the most important factors used by investors in India to assess company's performance. In India, although earlier investors have culturally placed more emphasis on accounting performance measures, not stock market indicators, due to the fact that the Indian firms are largely closely held family owned business houses. Furthermore, these promoters groups always favored payment of dividends rather than stock price appreciation, due to more focus on fundamental factors rather than speculative market related factors. For that reason, the dividends yields paid by Indian companies are always very high compared to other emerging and developed markets. Thus the study did not consider dividend yield in the stock market indicators since it will be a distorted measure since issuers in India always pay a high dividends yield, sometimes, irrespective of earnings, since they are valued by investors according to dividends not price appreciation. Furthermore, the type of ownership had an insignificant impact on stock market performance measures, which might imply that the stock performance was mainly affected by either economic and market conditions or speculative factors rather than ownership concentration. In addition, the results of this study could also indicate that there might be the possibility of non impact of equity ownership type on entire stock market performance but at least it has impact on market performance measures (PE, PBV) of individual company explains about the market measure financial performance of the particular company. There for based on various statistical analysis study concludes that equity ownership structure with proper judiciary mixture has positive relationship with both accounting as well as market performance measure of selective listed logistic firms of India.