WOMEN DIRECTORSHIP AND DEBT FINANCING IN NIGERIA A CRITICAL MASS APPROACH

Abstract

This study broadly investigates the impact of women directorship on debt financing among listed manufacturing firms in Nigeria, anchored on the Critical Mass Theory. Specifically, this study evaluates the influence of board female gender tokenism and board female gender critical mass on debt financing, using Linear Bootstrap Regression Analysis technique to test the hypotheses. Data were collected from a sample of 46 manufacturing firms listed on the Nigerian Exchange Group (NGX) from 2014 to 2023, using purposive non-probability sampling technique. The analysis reveals that corporate boards with a critical mass of women tends to implement more conservative financial policies, such as reduced dependence on debt, in line with the ideas of the Critical Mass Theory. On the other hand, token female membership on corporate boards, have no significant impacts on decisions regarding debt financing. Consequent upon the outcome, this study concludes that a critical mass of female directors at the board level enhances conservative financial management that bolsters the resilience of firms within Nigeria's turbulent economic environment. On the bases of the outcomes, this study carefully recommends that stakeholders, including regulators and investors, should prioritize gender diversity as a strategic asset for long-term financial stability.