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According to Manikutty (2000) the private sector of Indian industries is dominated by family groups since Indian independence in 1947. As Ray (1979) points out that at the time of independence most of the Indian manufacturing was dominated by presence of leading family groups like Tata, Birla, Thapar, Singhania Families. Gupta and Gollakota (2006) explain it with the hypothesis proposed by LaPorta et al. (1999) and Shleifer and Vishy (1997) which suggests that concentrated ownership offers significant benefits in the economies where property rights are not well defined and/or government has excessive powers in enforcing it. They further argue that during pre independence phase there was low confidence in the British Governments commitment to protect the rights of Indians that resulted in more family ownership in order to reduce risk as compared to other types of ownership. Gupta and Gollakota (2006) also explain the existence of more family firms in India by consider the hypothesis proposed by Claessens and Fan (2002). They further argue that existence of typical trading communities such as Marwaris, Banias,Chettiars and Kammas who have a strong culture of frugality and high saving rate provide a source of capital for businesses so more dominant in indian businesses. The caste system in India, which had allocated the task of business to Vaishya or trading communities, has also played a significant role in development of these communities as skilled business communities. A detailed look of Indian business history after independence describe the journey of Indian businesses from socialistic environment to liberalised or open system, but for this study we are concentrating on the typical characteristics of Indian family firms which make them distinguished from global family firms. Gupta and Gollakota (2006) mention one of the important features of family ownership in India that owners can maintain control over a company even if their actual equity contributions are low; this is possible in part because for growth companies often use debt and their equity bases are low. They further argue that family firms in India emphasise on stability, thrift, conservatism, prefer family member to be CEO and realize high performance under the combined and overall control of family. Rajagopalan and Zhang (2008) argue that dominant shareholding of family, use of pyramidal ownership structure to control large business group, related party transaction and families or allies appointment as main characteristics of Indian family business. Dutta (1997, p.74) states that in India family sons are given exposure to family business during their school/college days and later on they are absorbed in the business in their early 20s and transferring general management control of the business to them in late twenties. He further states that if family business has potential for growth then normally family sons work in their business. Dutta (1997, p.109) sates that most of the business communities in India are orthodox and conservative and follow traditional religious practices more as compared to professional middle class families. Dutta (1997, p.162) further points out that contrary to their western counterparts Indian family business have tendency to inv本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。