State-owned companies that bring in strategic investors through private placements tend to have better performance and corporate governance compared to those that only attract financial investors. This study looked at how private placements by state-owned companies between 2006 and 2013 affected their long-term success. The researchers found that strategic investors had a more positive impact on company performance than financial investors. Companies that attracted strategic investors showed higher levels of corporate governance and better long-term performance. This suggests that involving external institutional investors in private placements can lead to improved decision-making and promote reforms in state-owned companies.