Co‐Opted Boards: Evidence From Systematic Literature Review

ABSTRACT This literature review examines board co‐option in accounting, finance and corporate governance using a Systematic Literature Review approach guided by the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses framework guidelines. We analyse 65 archival studies published between 2002 and Q1 2025, focusing on the determinants and consequences of board co‐option. Our review identifies CEO power and social connectedness as key drivers of co‐option. Co‐opted boards are linked to lower financial reporting quality, increased financial risk, higher leverage and lower credit ratings. While they may foster long‐term investments, co‐opted boards undermine oversight, facilitating earnings management and inefficient decision‐making.