Title: Foreign family directors, gender diversity, and debt costs for family business firms

Authors: Amarjit Gill; Harvinder S. Mand; Gaganpreet Kaur

Addresses: Department of Finance and Management Science, Edwards School of Business, University of Saskatchewan, 25 Campus Drive, Saskatoon, SK, V7N-5A7, Canada ' University College Benra (Dhuri), District Sangrur, East Punjab, India ' Panth Rattan Jathedar Gurcharan Singh Tohra Institute for Advance Studies in Sikhism, Bahadurgarh, District Patiala, Punjab, India

Abstract: The current study surveyed Indian family business owners to assess the link between foreign family directors (FFDs), gender diversity, and debt costs in family business firms (FBFs). We used ordinary and two-stage least squares methods to address endogeneity issues. According to the survey analysis, having FFDs in a company can increase gender diversity and internal financing sources while decreasing debt costs. Gender diversity and internal financing sources reduce the debt costs for FBFs in India. The survey results analysis adds to the current literature on the connection between FFDs, gender diversity, and debt costs in family-owned businesses. This survey analysis can assist academia in conducting more studies on this subject. The results can also benefit family-owned businesses by gaining insights into reducing debt costs.

Keywords: foreign family directors; FFDs; gender diversity; debt costs; family business firms; FBFs; India.

DOI: 10.1504/IJCG.2025.144249

International Journal of Corporate Governance, 2025 Vol.15 No.1, pp.28 - 45

Received: 14 May 2024
Accepted: 19 Aug 2024
Published online: 03 Feb 2025 *