Abstract
This study examines the relationship between composite board diversity and firm performance by using access to finance and R&D intensity as serial mediating mechanisms. This study argues that diverse boards enhance firm’s financing capacity and innovation investment decisions by providing enhanced strategic decision-making and monitoring effectiveness. Therefore, board diversity is widely accepted to influence various performance outcomes through different pathways based on Upper Echelons Theory, Resource-Dependency Theory, and Agency Theory. For analysis, this study uses balanced panel data from 100 firms from 2015-2025 operating in widely recognized high capital-intensive sectors and listed on the Bombay Stock Exchange. Panel regression methods and mediation analysis were employed to examine the proposed relationships. This study contributes to corporate governance, corporate finance, and strategic management literatures by exploring how diverse boards affect firm performance through financing–innovation channels. Furthermore, the results provide useful insights for managers, boards, and legislators in emerging-market settings.