MNC Subsidiaries vs Domestic Firms

This research examines the impact of foreign-ownership on the corporate governance and disclosure policies of firms. MNCs operate across different countries with different corporate governance regimes, which will often deviate from corporate governance practices in the home country of MNCs. Thus MNCs have to manage multiple economic, legal, political and cultural environments. This paper aims to analyze difference in corporate governance and disclosure practices among firms owned by foreign owner (MNC subsidiaries) and local owner (domestic firms). These research findings suggest that subsidiaries of MNCs are no better in disclosure practices than domestic Indian firms.