Abstract

This study examines whether changes made in the composition of the board of directors at the time of a firm’s initial public offering are related to changes in the firm’s innovation activity. The dependent variable is the change in R&D intensity from the pre-IPO period to the post-IPO period. Using a sample of 93 biotechnology or semiconductor firms with an IPO during the years 1996 – 2005, we find that changes in R&D intensity are negatively related to changes in (a) board size, (b) the percentage of members who are venture capitalists, and (c) the percentage of members with a science education and positively related to the change in age diversity.

THE STEVENS INSTITUTE OF TECHNOLOGY WESLEY J. HOWE AWARD FOR EXCELLENCE IN RESEARCH ON THE TOPIC OF CORPORATE ENTREPRENEURSHIP

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