Governance Structures of Indian IPO Firms

In addition to the inherent problems of information asymmetry, IPOs face the challenge of being stripped off to public scrutiny and compulsory adherence to stringent compliances and laws of land. Corporate governance mechanisms play a significant role working as signals to build ‘organizational legitimacy’ required in the face of ‘liability of market newness’. Building upon this logic, the study attempts to explore the preparedness of firms on account of corporate governance as reflected through board structures for the emerging markets of India. Based on the study of 404 Indian IPOs, the study highlights governance characteristics of firms and how these differ across IPO and firm characteristics for the firms reaching out to public for first time breaking off the shell of private ownership.