Building on the agency theory and the resource-based view of the board of directors, we study how board structure and leadership affect the value of entrepreneurial venture IPOs. The relationship between value and board independence is inverse U-shaped in young and high-tech entrepreneurial venture IPOs, which means that, beyond a certain threshold, board independence becomes excessive. Excessive board independence does not occur in mature companies and in low and mid-tech sectors. Finally, excessive board independence may be avoided by separating the roles of CEO and president of the board of directors.
Bertoni, Fabio; Meoli, Michele; and Vismara, Silvio
"BOARD LEADERSHIP AND INDEPENDENCE IN ENTREPRENEURIAL VENTURE IPOS,"
Frontiers of Entrepreneurship Research: Vol. 35
, Article 1.
Available at: http://digitalknowledge.babson.edu/fer/vol35/iss8/1