Abstract
In this study, we examine the impact of ownership structure on the receivables management of Indian corporate firms. We argue that owners' incentives to monitor manager's actions increase with the increase in their stake holding. Therefore, firms with concentrated promoter and institutional ownership should have lower receivables in terms of its sales. Our results obtained using a panel of 1,164 firms show a negative relationship between the percentage of promoter holding and the receivables ratio. Further, for growing firms, both promoter and institutional shareholdings have a negative impact. However, the firm size effect did not show any impact on the relationship between ownership concentration and receivables ratio.
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