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 …

expertise are more likely to be conservative, but their bias is less severe. Our analysis shows that board's commitment power … and bias are substitutes. …

technologies that increase investor diversification or enable pass-through voting have important implications for these trade …