Using an econometric framework, we examine the nature of relation between Tobin's Q and family shareholding in India. While there is no obvious causality laid down by theoretical literature, empirical evidences show a wide range of findings. In the present work, by controlling for a host of factors, we document a non-linear relation between family share holding and firm value. In the literature, the issue of endogeneity problem is highlighted in the context of ownership-performance relation. We

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... address this concern via the instrumental variable regression method. Even though the curvilinear aspect of the relation between firm value and insider share remain intact in all of the specifications, our model statistics do not trace any endogeneity problem in the data. ± The author would like to thank Manoj Pant, Amp Mitra and participants of Indian Econometric Society conference for their helpful comments and suggestions. However, views expressed in this paper are strictly personal.