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Rethinking Governance: Family Ownership, Gender Diversity, and Strategic Decision-Making in Emerging Markets

Author

Listed:
  • Md. Rubel Miah

    (Department of Business Administration, Noakhali Science and Technology University, Noakhali, Bangladesh)

  • Md. Jamsedul Islam

    (Department of Tourism and Hospitality Management, Noakhali Science and Technology University, Noakhali, Bangladesh)

  • Sanjib Sutra Dhar

    (Department of Accounting, University of Chittagong, Chittagong, Bangladesh
    Corresponding Author)

  • Tayeba Tun Noor

    (Department of Business Administration, Noakhali Science and Technology University, Noakhali, Bangladesh)

  • Bablu Kumar Dhar

    (Business Administration Division, Mahidol University International College, Mahidol University, Salaya, Thailand)

  • Sharmila Devi Ramachandaran

    (Faculty of Business and Communication, INTI International University Nilai, Malaysia)

  • Sunil Kumar Saha

    (NOVA Information Management School, Universidade Nova de Lisboa, Lisbon, Portugal
    Department of Accounting and Finance, Anglia Ruskin University, Cambridge, United Kingdom)

Abstract

[Purpose] This study examines how family ownership and female participation in board governance influence firm performance in an emerging market, with evidence from Bangladesh. It specifically explores the role of independent female directors and foreign female directors in board governance and strategic decision-making. [Design/methodology/approach] Using annual panel data from 50 manufacturing firms listed on the Dhaka Stock Exchange (DSE) covering the period 2017–2023, this study applies a fixed-effects panel regression with robust standard errors to analyze the relationship between family ownership, female board participation, and firm performance. Firm performance is measured using Return on Assets (ROA) and Tobin's Q. [Findings] The results reveal that family-owned firms exhibit lower productivity, negatively impacting firm performance. Independent female directors significantly increase Tobin's Q by 2.06 units, while foreign female directors improve ROA by 1.72 percentage points. These findings highlight the role of board diversity in effective governance and strategic decision-making. [Research implications] This study focuses on firms listed on the DSE, which may limit the generalizability of the findings to other emerging markets. Future research could explore the underlying mechanisms through which female directors enhance firm performance and examine cross-country governance comparisons. Firms should reassess their board composition by increasing the representation of independent and foreign female directors. Such diversity can improve ROA and Tobin's Q, indicating stronger financial performance and strategic oversight. Enhancing female participation in corporate governance fosters gender inclusivity and more balanced decision-making processes, contributing to broader sustainability and corporate responsibility goals. [Originality/value] This study provides one of the first empirical examinations of the joint influence of family ownership and female board participation on firm performance in the Bangladeshi corporate context. It provides practical guidance for policymakers, investors, and corporate leaders to improve governance outcomes.

Suggested Citation

  • Md. Rubel Miah & Md. Jamsedul Islam & Sanjib Sutra Dhar & Tayeba Tun Noor & Bablu Kumar Dhar & Sharmila Devi Ramachandaran & Sunil Kumar Saha, 2026. "Rethinking Governance: Family Ownership, Gender Diversity, and Strategic Decision-Making in Emerging Markets," Advances in Decision Sciences, Asia University, Taiwan, vol. 30(4), pages 25-47, December.
    • Handle: RePEc:aag:wpaper:v:30:y:2026:i:4:p:25-47
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    References listed on IDEAS

    as
    1. Faccio, Mara & Lang, Larry H. P., 2002. "The ultimate ownership of Western European corporations," Journal of Financial Economics, Elsevier, vol. 65(3), pages 365-395, September.
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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