Global board diversity and debt cost

Carolina Bona-Sánchez, Gema del C. Fleitas-Castillo, Jerónimo Pérez-Alemán and Domingo Javier Santana-Martín

Meditari Accountancy Research, 2026, vol. 34, issue 3, 636-661

Abstract: PurposeThis study aims to investigate the impact of board diversity (including directors’ age, gender, educational background, tenure and nationality) on the cost of debt within a concentrated ownership environment.Design/methodology/approachThis sample consists of 107 non-financial firms listed in Spain, drawn from the OSIRIS database (Bureau Van Dijk), covering the period from 2014 to 2022, and, to enhance the robustness of the results obtained, the study uses several econometric models.FindingsThe findings reveal that global board diversity is associated with higher financing costs. This suggests that in such settings, creditors view diversity as a potential source of uncertainty and inefficiency in corporate governance. However, the relationship between global dimensional diversity and debt costs turns negative when a bank is the controlling shareholder. This implies that bank control alleviates information asymmetry, enhances financial discipline and reduces creditor concerns regarding board composition.Originality/valueThe findings emphasise the importance of considering ownership structure when evaluating the financial implications of board diversity, as its effect on debt costs is contingent upon the incentives and governance role of the dominant shareholder.

Keywords: Global board diversity; Cost of debt; Dominant owners; Symbolism (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:medarp:medar-09-2025-3287

DOI: 10.1108/MEDAR-09-2025-3287

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