IPO boards of directors and firm performance: Threshold firms and governance theory boundaries

Abstract

Past research examining the influence of boards of directors on firm performance has acknowledged, but typically failed to account for, the early life cycle stage of the firm. This study analyzes the effectiveness of board structure and behavior on firm performance in the early stages of the life-cycle for start-up IPO firms. Results suggest that the life-cycle of the firm is an important contextual variable to include when determining board effectiveness.