Exploring Corporate Governance on Post-IPO Performance of R&D Intensive New Public Firms

Building on corporate governance life cycle theory, this study aims to enrich the understanding of the influence of corporate governance on post-IPO performance of R&D intensive newly public firms. The findings of this study reveal that corporate governance is an essential factor for determining the long run post-IPO performance. Promoters who retained controlling ownership in the post-IPO period and board independence are positively associated with the firm’s performance. Yet, a promoter’s involvement in management can have adverse influence on the firm’s performance. The outcome of the hypotheses draws support at the interplay of agency, stewardship, and resource dependence theory. The novelty of this study prevails in understanding the impact of corporate governance at the nexus of industrial and institutional contexts together.