Purpose – This paper aims to fill the gap of the relatively under-researched impact of women directors on initial public offering (IPO) underpricing in developing countries. Gender diversity is an important emerging issue within the corporate governance literature. Recently, there has been a growing thrust on gender-diverse boards. However, their proportion on corporate boards is low worldwide. The paper examines the influence of women directors on the underpricing phenomenon pervasive in the IPO context. Design/methodology/approach – Gender diversity is an important emerging issue within the corporate governance literature. Recently, there has been a growing thrust on gender diverse boards. However, their proportion on corporate boards is low worldwide. The impact of women directors on IPO underpricing in developing countries remains relatively under-researched. This paper aims to fill this gap in research. The paper examines the influence of women directors on the underpricing phenomenon pervasive in the IPO context. Findings – The results suggest that the subscription ratio, listing delay and block holder ownership positively influence raw returns and market-adjusted excess returns. The proportion of women directors showed negative non-significant impact on both type of returns. We did not find evidence of the other explanatory variables included in the model. Research limitations/implications – The relatively low proportion of female directors may be the reason for some of the non-significant findings. Future research with a good gender balance on boards is likely to help generalising the findings. Other confounding factors also need to be included in the model for deeper explanations of the phenomenon. Practical implications – The study highlights the existence of a “glass ceiling” in Indian corporate settings, where women have to make a tough fight. This barrier must be removed to unleash the real talent of women as directors and see this talent reflected in returns. Social implications – The paper highlights both the need to better manage the gender balance in corporate board rooms and the need to incorporate women’s talents in corporate and investment decisions. Originality/value – The paper highlights the significant gender gap in IPO directorial positions in developing countries such as India. It explores female directors’ contributions in initial pricing performance, which remain unaddressed in this part of the world. Insights into this sensitive issue in an emerging economy such as India can provide important inputs.

The present research study contributes to the extant literature on underpricing rather uniquely by addressing the under-researched linkage of corporate governance to underpricing. The originality of this effort also lies in being one of the initial efforts of exploring governance in context of initial public offering (IPO) underpricing in Indian settings. The study comprises an empirical analysis of 404 Indian IPOs studied for their board structures and ownership attributes using IPO prospectuses. Drawing support from the signalling theory, the variables board size and board committees exhibit a significant positive relationship to the IPO returns on the listing day. In Indian markets characterized by concentrated family-owned firms, promoter ownership does work as an effective signal for investors who take cues of firm potential from ownership patterns. Corporate governance measures have a miniscule contribution in explaining the underpricing of Indian IPOs and indicating that investors do not incorporate these as a major consideration in their investment decision.

Need of corporate governance in present times is intense especially when the global instances of corporate failures and mismanagement are many. The eminence and uniqueness of banking firms necessitates the need of rational corporate governance practices more so with the added emphasis of Basel Committee on Banking Supervision. The study attempts to examine the role of board structures in the financial performance of select banks over a time span of 2008-15 in India where banking and governance both have hogged the limelight sadly for not very pleasant reasons. Analyzing a small sample of 70 firm entries through panel regression, the study establishes Chairman-CEO duality, average remuneration of directors, board committees and female directors as significant influencers of bank performance. Certain limitations of the study though challenge the generalization of results but it forms a good basis for further research.

In their pursuit to garner resources and support for their IPO, the issuing firms prepare well on all fronts. Corporate governance, specifically board structures, is a critical issue that affects the decision quality and also influences the investors’ psyche. Building on theories of agency, resource dependency and signaling, this article attempts to study the effects of presence of foreign directors on firm-specific and board-related characteristics of IPO issuing firms. Adding to the scant literature on national diversity, this study concludes that foreign directors do signal a firm’s intent of internationalization and contribute to strengthening corporate governance but national diversity does not translate into IPO returns. Exploring a sample of Indian IPOs issued from April 2001 to March 2017, this study finds that presence of foreign directors on the boards brings about differences in governance mechanisms wherein internationalized boards were found to be stronger on governance front. Larger boards, more committees, less number of related directors, better board interlocking were the benefits that manifested from presence of foreign board members. Issue size and issue price of shares at the time of IPO are found to be significantly higher for firms with foreign directors on their boards reflecting better acceptance among the investors.

The present study attempts to explore the Indian banking sector from 2007 to 2017 for its performance and for the influence of important characteristics like ownership of banks, board functioning and the effect of independent directors. The results establish that the type of bank has a significant impact on performance metrics, board characteristics and bank-specific features. Moreover, the positive significant influence of board size and board independence is confirmed using panel data analysis. Further, the partially mediating role of independent directors on the relationship of financial performance (measured through return on assets and return on equity) and board characteristics is confirmed using mediation analysis. The present research holds important insights for policymakers, regulators and stakeholders of the banking sector, with a push to reorient their emphasis on board independence and board functioning for better financials of banks in India.