Busy Boards: Value Impact on IPO Firm Assessments

This presentation explores the role of busy boards in newly public firms, analyzing their effectiveness in performance and governance. It reviews literature critiquing and supporting busy directors, focusing on IPO firms. Using data from 1,099 U.S. venture IPOs (1996–2008) and two-stage regressions, the study finds that busy boards enhance performance in IPO contexts but lose their advantage as firms mature. It concludes that governance policies should avoid broad restrictions on director...