The Determinants of Board Structure at the Initial Public Offering

  title={The Determinants of Board Structure at the Initial Public Offering},
  author={M. Baker and Paul A. Gompers},
  journal={The Journal of Law and Economics},
  • M. Baker, M. Baker, Paul A. Gompers
  • Published 2000
  • Business
  • The Journal of Law and Economics
  • Abstract This paper describes board size and composition and investigates the role of venture capital in a sample of 1,116 firms' initial public offerings. First, firms backed by venture capital have fewer insider and instrumental directors and more independent outsiders. Second, we consider board composition as the outcome of a bargain between the CEO and outside shareholders. Representation of independent outsiders on the board decreases with the power of the CEO—tenure and voting control—and… CONTINUE READING
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