Distinct Dimensions of Human Capital in Distressed Firms: Implications for Firms and Research

This study examines how research has analysed human capital in distressed firms, which face unique challenges and complex choices impacting survival. This paper highlights that while literature has grappled with several sub-streams of interrelated research, their integration into a specialised subject from a distress perspective remains. Drawing perspectives from multiple research streams, we highlight the distinct issues distressed firms face in the human capital context. We present a conceptual framework outlining the ex-ante interactions of bankruptcy and human capital across the distress lifecycle (pre-distress, distress, and bankruptcy). This paper recommend a greater ex-ante focus (managerial, academic, and research) on the distinct dimensions of human capital across the distress lifecycle to avoid firm collapse/liquidation events.