The consequences of political donations for IPO premium and performance

This study explores the effect of directors' political contributions on IPOs' valuation and firm survival. We find that individual by directors bring significant benefits to IPO firms. Specifically, we show board members, particularly those CEOs founders, increase premium survivability relationship between is strong among non-venture-backed firms, while link survival more pronounced for venture-backed firms with corporate governance. Our findings are robust endogeneity concerns alternative measures donations performance. results confirm relevance signaling resource dependence theories.