Does board committee independence affect financial distress likelihood? A comparison of China with the UK

This study explores the relationship between board committees’ independence and financial distress of firms in China UK. Akin to previous literature, we estimate this 2007 2016 using a conditional logit model on sample matched pair firms. For China, results indicate positive statistically significant association percentage independent audit committee members In contrast, opposite was found for compensation nomination members. UK, relationships are same, but only independence. Our overall suggest that not favorable firm survival. beneficial health firms, as they responsible designing fair packages selecting most suitable persons decide strategic moves firm, respectively. A robustness test demonstrates robust assumed functional form imposed by confirms our core findings both Chinese UK