Empirical Research on Corporate Distress: Assessing the Role of the Boards of Directors

Although still fragmented, the advancements within the empirical literature about the board-distress relationship have suggested that particular board features can have a role in enhancing the survival chances of distressed firms. This article aims at providing both the strategic management scholars and practitioners with the systematization of these advancements. The findings from the presented codification show that board independence tends to prevent crisis situations and to increase the survival chances of restructuring firms. Reinforcing board capabilities’ heterogeneity might also help in preventing/resolving crises. Board turnover may have a positive effect, too, as suggested by the negative effect of board tenure. Also, it is evidenced that the heterogeneity of the statistical methods employed by the extant literature has increased proportionally to time and journal ranking.