The role of board quality and women on boards in family-controlled firms’ leverage strategies

Purpose This research aims to investigate the relationship between family control and leverage, with a focus on how board quality and the presence of women on the board can moderate this relationship. Design/methodology/approach The study examines nonfinancial firms listed on the Indonesia Stock Exchange, covering a sample of 362 companies and 1,810 observations from 2018 to 2022. Quantitative methods were employed to collect and analyze empirical data. Findings The results reveal a significant positive correlation between family control and leverage. Furthermore, board quality moderates the relationship between family control and leverage. The presence of women on corporate boards also serves as a moderating factor in this relationship. Originality/value By integrating agency theory and resource dependence theory, this study provides a deeper understanding of the dynamics between family control and leverage, highlighting the impact of board quality and gender diversity on corporate governance.