Beyond Quotas: The Influence of Board Gender Diversity on Capital Structure in Firms from Latin America and the Caribbean

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dc.contributor.affiliationUniversidad Nacional de Colombia Medellin, Medellin, Colombia
dc.contributor.affiliationUniversidad de Medellín, Medellin, Colombia
dc.contributor.authorJ.D., González-Ruíz, Juan David
dc.contributor.authorN.J., Marín-Rodríguez, Nini Johana
dc.contributor.authorC., Ospina Patiño, Camila
dc.date.accessioned2025-12-03T19:34:48Z
dc.date.available2025-12-03T19:34:48Z
dc.date.issued2025
dc.descriptionBoard gender diversity (BGD) has gained attention as a governance mechanism that may influence corporate financial decisions. However, empirical evidence from Latin America and the Caribbean (LAC) remains limited despite the region’s significant gender disparities in corporate leadership and distinct institutional characteristics. This study examines how BGD affects capital structure decisions in LAC firms, drawing on agency theory and resource dependency theory. We analyze a panel dataset of 403 firms from 2015 to 2022, sourced from the London Stock Exchange Group database, using fixed effects models with Driscoll–Kraay standard errors to control for firm heterogeneity and econometric concerns. Results show that BGD is significantly and negatively associated with leverage ratios, with a one percentage point increase in female board representation corresponding to a 0.15 to 0.25 percentage point decrease in debt-to-capital ratios. This relationship is robust across multiple specifications and exhibits threshold effects, with stronger impacts when female representation reaches 20% or higher. The negative association is more pronounced for larger firms, consistent with enhanced governance benefits in complex organizations. Our findings suggest that gender-diverse boards exercise more effective oversight of financial decisions, leading to more conservative capital structures in emerging markets where governance mechanisms are particularly important for firm credibility and stakeholder confidence. © 2025 Elsevier B.V., All rights reserved.
dc.identifier.doi10.3390/jrfm18090505
dc.identifier.instnameinstname:Universidad de Medellínspa
dc.identifier.issn19118074
dc.identifier.reponamereponame:Repositorio Institucional Universidad de Medellínspa
dc.identifier.repourlrepourl:https://repository.udem.edu.co/
dc.identifier.urihttp://hdl.handle.net/11407/9257
dc.language.isoeng
dc.publisherMultidisciplinary Digital Publishing Institute (MDPI)spa
dc.publisher.facultyFacultad de Ingenieríasspa
dc.relation.citationissue9
dc.relation.citationvolume18
dc.relation.isversionofhttps://www.scopus.com/inward/record.uri?eid=2-s2.0-105017384097&doi=10.3390%2Fjrfm18090505&partnerID=40&md5=2975ddc4472d9b0a3aee12d7d6749818
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dc.rights.accesoRestricted access
dc.rights.accessrightsinfo:eu-repo/semantics/restrictedAccess
dc.sourceJournal of Risk and Financial Management
dc.sourceScopus
dc.subjectBoard Gender Diversity
dc.subjectCapital Structure
dc.subjectCorporate Board
dc.subjectLatin America And The Caribbean
dc.titleBeyond Quotas: The Influence of Board Gender Diversity on Capital Structure in Firms from Latin America and the Caribbean
dc.typeArticle
dc.type.localArtículospa
dc.type.versioninfo:eu-repo/semantics/publishedVersion

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