India’s rise as the world’s fifth-largest and fastest-growing major economy underscores the growing significance of mid-cap companies. These firms blend the resilience of large corporations with the agility of smaller ones, making them vital to the nation’s economic progress. This study examines how CEO characteristics, sector-specific factors, and effective corporate governance impact institutional shareholding. CEO characteristics like tenure, qualifications, and institutional shareholding shape investor perception, while macroeconomic factors and strong governance practices further influence investment decisions in this dynamic market.                                                                                                                            

This research is based on a detailed analysis of mid-cap companies listed on the National Stock exchange (NSE). It uses a balanced panel dataset covering seven year periods from 2018 to 2024.                                                                                                      

The study finds that institutional investors in India’s mid-cap segment are significantly influenced by CEO attributes, industry-specific financial conditions, and governance standards. Firms led by experienced and well-qualified CEOs with strong governance practices tend to attract more institutional investment. Furthermore, sectoral financial indicators are found to moderate these effects, underscoring the complexity of investment decisions in this segment.