The impact of board composition and top management team ownership structure on post-IPO performance in young entrepreneurial firms

• 成果类型: Article
• 署名作者: Kroll, Mark; Walters, Bruce A.; Le, Son A.
• 署名单位: University of Louisiana System; Louisiana Technical University
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/20159920
• 发表日期: 2007
• 页码: 1198-1216
• 关键词: initial public offerings; long-run performance; Employee ownership; FOUNDER STATUS; DIRECTORS; MODEL; governance; valuation; GROWTH; COMPENSATION

摘要

Challenging agency theory prescriptions for board composition, we contend that the boards of young firms that have recently gone public are best comprised of a majority of original top management team (TMT) members, rather than independent outsiders. We argue that such board members possess valuable tacit knowledge of the firms and their entrepreneurial visions and are in the best position to provide oversight. We additionally argue that outsiders should provide resources that firms' TMTs might use to execute their strategies, rather than monitor the TMTs. Our results from 1996-97 data on 524 initial public offerings support our contentions.