Gregor, Martin; Michaeli, Beatrice - 2022
explores a new technology, business concept, or market. We find that only a board with sufficiently high anti-approval bias can … discipline the CEO's empire-building tendency and opportunistic reporting. A board with this bias, however, underinvests in … biased but their bias is less severe. Our model also predicts that boards overinvest in innovations and rely on the …