We examine how firms with foreign controlling shareholders (promoters) affect corporate investment in India. Using a … on corporate investment is stronger among firms with a high-quality information environment and firms prone to agency …

constraints, measured by the sensitivity of investment to cash flow. We develop two original corporate governance indices based on … standard investment regressions where the cash flow variable is interacted with our corporate governance indices and variables … of investment, particularly in firms with an outside controlling owner and in firms with low managerial ownership. In …