Michael Ewens, Nadya Malenko, 08 August 2020

Corporate governance of privately held firms is becoming increasingly important given the rise in the number of private firms and recent governance scandals at such firms. This column examines the structure of the board of directors at venture-capital-backed startups and documents new facts about private-firm board size, the allocation of control, and board-composition dynamics. Within firms, board control shifts over time from venture capitalists to entrepreneurs. Independent directors play a previously under-explored ‘mediation’ role, mediating and resolving disputes between venture capitals and entrepreneurs.

Ralph De Haas, Daniel Ferreira, Tom Kirchmaier, 24 December 2017

How boards perform their dual role of supervisor and advisor of corporate management is difficult to observe from outside of the company. This column presents a survey of non-executive directors in various emerging markets which reveals substantial variation in the structure and conduct of boards as well as in directors’ perceptions about the local legal environment. Directors who feel adequately empowered by local legislation appear less likely to vote against board proposals, and also form boards that play a stronger role in the company’s strategic decision making. 

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