Indebtedness in family-managed firms: the moderating role of female directors on the board

López‐Delgado, Pilar; Diéguez‐Soto, Julio

doi:10.1007/s11846-018-0307-y

Cited by 26 publications

(20 citation statements)

References 120 publications

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“…Indebtedness is a ratio that shows the financial structure adopted by the firm to address its investment policies, i.e., it reflects whether a greater preference is given to debt than to equity or vice versa [32]. Based on previous literature [18], we measure the level of indebtedness as total debt (short-and long-term) divided by total net assets.…”

Section: Dependent Variablementioning

confidence: 99%

“…Namely, female presence in governance structures implies the existence of particular attitudes towards indebtedness [17]. Becoming indebted is crucial for firms, as it allows them to preserve their own development, competitiveness and survival [18]. Additionally, indebtedness permits undertaking investment opportunities, and influences productivity and growth [19,20].…”

Section: Introductionmentioning

confidence: 99%

“…Additionally, indebtedness permits undertaking investment opportunities, and influences productivity and growth [19,20]. Up to now, most studies have focused on the impact of female presence in boards on the level of indebtedness [18,21,22]. However, surprisingly, scarce attention has been paid to the effects of female presence in other corporate governance structures, such as top management teams or general shareholders' meetings, on the level of firms' indebtedness.…”

Section: Introductionmentioning

confidence: 99%

“…Third, Spain has been one of the first European countries to promote a more balanced presence of men and women in the workplace and in governing bodies due to the strong legislative movement that has been developed since the mid-2000s [28,29]. Recent research shows that some years after these reforms, the scarce presence of women in corporate governance bodies is changing [18,30], making the context of this country a convenient setting in which to analyse the female influence on boards of directors, top management teams and general shareholders' meetings. Therefore, addressing the issue of indebtedness is particularly relevant in the Spanish family firm agri-food context.…”

Section: Introductionmentioning

confidence: 99%

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Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

2021

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Family firms form the backbone of most of the world’s economies. While the issues surrounding family firms are diverse, gender diversity and its impact on the strategic and financial decisions of such firms is a topic that has generated significant debate in recent years. In particular, one of the most crucial unresolved questions is whether or not increasing the female presence in the family firms’ corporate governance bodies would be beneficial for improving their internal functioning. To shed new light on these issues, our study aims to examine the influence of gender diversity on the level of indebtedness of Spanish agri-food family firms. Specifically, and applying a risk-aversion perspective, the research goal is to analyse whether the female presence in corporate governance structures (board of directors, top management team and general shareholders’ meeting) influences the level of firm indebtedness. To test the suggested relationships, ordinary least square regression models were applied to a sample of 137 firms. The final sample was obtained by combining quantitative data from the SABI database and qualitative data from a survey conducted by the Spanish Institute of Family Firms and the Spanish Network of Family Business Chairs. This study reveals an inverse relationship of female presence in the board of directors, in the top management team, and in the general shareholders’ meeting on the level of indebtedness of Spanish agri-food family firms. In other words, the findings show that female presence in corporate governance structures contributes to enhanced business management behaviour and, thus, to a better utilisation of firms’ financing strategies. The obtained results have very important practical and social implications, insofar as they contribute to the building of a more inclusive and sustainable business world, aimed at reducing gender inequality at top positions in firms.

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Section: Dependent Variablementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

2021

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“…Past literature studies the effect of BOD diversity based on various demographic characteristics such like ethnic Abdullah, Maruhun, Tarmizi, & Rahman, 2018;Abdul, Madah Marzuki, Jaafar, & Masron, 2018;Gul, Munir, & Zhang, 2016), gender Authors, 2015;Badru, Ahmad-Zaluki, & Wan-Hussin, 2019;Hussain, Rigoni, & Orij, 2018;Jubilee, Khong, & Hung, 2018;López-Delgado & Diéguez-Soto, 2018;Low, Roberts, & Whiting, 2015;Omar & Amran, 2017;Poletti-Hughes & Briano-Turrent, 2019;Sheela, Je-Yen, & Rajangam, 2016;Usman, Farooq, Zhang, Makki, & Khan, 2019), religion (Authors, 2017;Čornanič, Novák, & Šarapatka, 2018) and others. Among them, gender-balanced board brought alternative viewpoints (Zahra & Pearce, 1989), mitigated the shortcoming of corporate governance (Gul, Srinidhi, & Ng, 2011), reduced financial reporting mistake and fraud (Wahid, 2018), improved firm 's performance (Dezso & Ross, 2012) and contributed to the strategic direction (T. Miller & Triana, 2009).…”

Section: Introductionmentioning

confidence: 99%

Women Directors and Cost of Debt

2020

BJSSH

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Calling for a gender-balanced board has become a global trend since a few decades ago. Malaysia envisions to have at least 30 percent of women directors in board of directors by 2020 and making mandatory for large listed firms to take the lead since 2017. On the other hand, bank loan is one of the main sources of finance to Malaysia listed firms. On top of that, cost of debt plays a significant role when firms considering debt finance. Fortunately, it can be reduced through corporate governance mechanism, namely a gender-balanced board. Nevertheless, the empirical evidences on the relationship between gender-balanced board and cost of debt based on emerging markets including Malaysia remaining scarce up to date warrant a study. Therefore, a study to determine the relationship between women directors and cost of debt in Malaysia is proposed in respond to the callings. There are a few implications of the proposed study. Firstly, it contributes to the hot debates on how women directors contribute to the board. Secondly, it contributes to the further understanding of different context's outcome, specifically both developed and emerging market. Practically, it sheds light to the regulators and policy makers in setting future corporate governance guideline. Besides that, it also provides insight to nomination committee in recruiting new board member. Lastly, it can become an additional reference to the potential investor when making their investment decision.

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Variable selection for classification and forecasting of the family firm's socioemotional wealth

Álvarez‐Díez

Baixauli‐Soler

Belda‐Ruiz

et al. 2023

Journal of Forecasting

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Socioemotional wealth (SEW) refers to those family‐centered goals that are likely to have a major influence on the strategic decision‐making process and performance of family firms. Many studies have used indirect indicators related to family involvement in ownership and management to measure SEW; meanwhile, others have developed scales to directly measure the level and importance of SEW in family firms. Limitations of both indirect and direct measures of SEW lead empirical research on SEW to be under threat. In the current study, we use random forests to identify the important indicators related to financial and economic decisions, as well as family‐related measures, for explaining the family firms' SEW and to design a good prediction model using the smallest set of nonredundant indicators. Our results show that the model that exhibits the minimum out‐of‐bag sample (OOB) error rate includes variables that refer to the presence of family members in the firm's management positions, long‐term nonfinancial debt, personnel expenditures, long‐term financial investments, short‐term financial debt, average storage period, and accounts receivables. For prediction, the model with a reasonably low estimated classification error includes only three variables, which refer to the presence of family members in the firm's management positions, long‐term nonfinancial debt, and accounts receivables.

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Indebtedness in family-managed firms: the moderating role of female directors on the board

Cited by 26 publications

References 120 publications

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

Women Directors and Cost of Debt

Variable selection for classification and forecasting of the family firm's socioemotional wealth

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