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
George, Bradley A. and Nix, Kimberly G.
"IS IPO THE DEATH OF INNOVATION?,"
Frontiers of Entrepreneurship Research: Vol. 29
, Article 1.
Available at: http://digitalknowledge.babson.edu/fer/vol29/iss12/1