Indian companies can perform better in stock market in association with business groups and capital markets, reveals a new study on Indian entrepreneurship by upcoming economy experts at Rice University, the Indian School of Business in Hyderabad, India, and the graduate business school INSEAD Singapore.
The research, however, contradicts a prior study that said business groups acted as substitutes in poorly developed economic institutions in developing countries.
The authors argued that business groups may have emerged as alternative solutions but they never substitute well-developed economic institutions.
Business groups are ever present in growing economies and developing countries, according to the study.
