Research Paper
Indian Journal of Corporate Governance
11(1) 35–44
© 2018 Institute of
Public Enterprise
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0974686218763857
http://journals.sagepub.com/home/ijc
Corresponding author:
Sangeeta Mittal, Assistant Professor, Room No. 6, Ground Floor, Faculty Block, Haryana School
of Business, Guru Jambheshwar University of Science & Technology, Hisar-125001, Haryana, India.
E-mail: yashikamittal96@gmail.com
Females’ Representation
in the Boardroom and
Their Impact on Financial
Distress: An Evidence
from Family Businesses
in India
Sangeeta Mittal
1
Lavina
2
Abstract
This study empirically examine the females’ representation (gender diversity) on
the board as well as their impact on financial distress by taking the sample of Indian-
listed family firms for a period ranging from 2013 to 2016. Descriptive statistics and
logistic regression have been used to find out the influence of feminine on financial
distress. The results of descriptive statistics show that on an average, there is just
9 per cent share of females on the board to a maximum of 28 per cent and only 2
per cent of firms have female chief executive officer (FCEO). Further, females have
a diminutive impact on financial distress since their presence on the board is very
low. Only one variable, females’ percentage (FPER) on the board is significant and
negatively associated with financial distress. However, other insignificant variables
are also negatively related with financial distress indicating that gender diversity on
the board can minimise the financial distress. Consequently, practical implications
derived from the present study are that there should be a considerable share of
females on the board and executive positions so that their decisions could consid-
erably impact the firm’s performance and be helpful to reduce the financial distress.
Keywords
Financial distress, boardroom, family business, gender diversity, India
1
Assistant Professor, Haryana School of Business, Guru Jambheshwar University of Science
& Technology, Hisar, Haryana, India.
2
Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science
& Technology, Hisar, Haryana, India.