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

Title

Authors

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.
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.

Keywords

Family ownership, board governance, gender diversity, strategic decision-making, firm performance, corporate governance, emerging markets, board dynamics

Classification-JEL

G34, L25, M14

Pages

25-47

How to Cite

Miah, R., Islam, J., Dhar, S. S., Noor, T. T., Dhar, B. K., Ramachandaran, S. D., & Saha, S. K. (2026). Rethinking Governance: Family Ownership, Gender Diversity, and Strategic Decision-Making in Emerging Markets. Advances in Decision Sciences, 30(4), 25-47.

https://doi.org/10.47654/v30y2026i4p25-47