We examine the effect of board composition on the restructuring activities of a sample of 94 firms that experienced a material decline in performance. We document that firms with a majority of outside directors on the board are more likely to initiate asset restructuring and employee layoffs and...

We examine the effect of board composition on the restructuring activities of a sample of 94 firms that have experienced a material decline in performance. We document that firms with a majority of outside directors on the board are more likely to initiate asset restructurings and employee...