Abstract

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.

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