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Founders and board structure: evidence from UK IPO firms

Wu, Chloe Yu-Hsuan; Hsu, Hwa Hsien


Chloe Yu-Hsuan Wu

Hwa Hsien Hsu


This study investigates whether a company's founders affect the combination of executive, grey and independent directors on its board at the time of initial public offering (IPO) in the UK. Particularly, we analyse how venture capitalists are associated with board structure in founder-managed and non-founder-managed firms. We find that UK IPO firms managed by founders tend to have more executive directors. Further, they are more likely to stack non-executive directors with more independent directors relative to grey directors. Venture capital ownership is not significantly associated with board structure at the IPO stage. However, further evidence suggests that venture capital ownership is negatively related to the percentage of executive directors and positively related to the percentage of grey directors in the founder-managed firms.


Wu, C. Y.-H., & Hsu, H. H. (2018). Founders and board structure: evidence from UK IPO firms. International review of financial analysis, 56, 19-31.

Journal Article Type Article
Acceptance Date Dec 11, 2017
Online Publication Date Dec 14, 2017
Publication Date 2018-03
Deposit Date Jan 16, 2018
Publicly Available Date Jan 16, 2018
Journal International review of financial analysis
Print ISSN 1057-5219
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 56
Pages 19-31
Keywords Corporate governance; Founders; Board structure; Venture capitalists; IPO
Public URL
Publisher URL
Additional Information This article is maintained by: Elsevier; Article Title: Founders and board structure: Evidence from UK IPO firms; Journal Title: International Review of Financial Analysis; CrossRef DOI link to publisher maintained version:; Content Type: article; Copyright: © 2017 Elsevier Inc. All rights reserved.
Contract Date Jan 16, 2018


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