Venture capital and private equity investors, governance, and success of IPOs: Evidence from India
研究了印度国内外风险投资和私募股权公司的作用，发现外资支持的公司在IPO后治理结构更有效，长期业绩和盈利能力更好，且独立董事和女性董事强化了这一效果。
Abstract In this article, we examine the role of domestic and foreign venture capital and private equity (VCPE) firms in India. We find robust evidence that portfolio firms backed by foreign VCPE firms incorporate effective governance structures after the initial public offering (IPO). Specifically, these firms are associated with smaller, more independent, and gender‐diverse boards. Furthermore, our results suggest that foreign VCPE firms continue their association with their portfolio firms in the post‐IPO period by nominating directors to the boards. Our results also suggest that portfolio firms backed by foreign VCPE firms are associated with better long‐term operating performance and profitability. This positive effect is exacerbated by the presence of independent and female directors. Collectively, our results support the view that good governance practices are key to the long‐term success of a business, especially in economies that lack good legal systems, developed financial markets, and alternative investment opportunities and where developing trust between parties in a transaction is crucial.