In this study, using a unique hand-collected sample of 523 closely held Colombian family firms and 5.094 firm-year observations, with 4907 board members, including 833 female board members, we show that female directors have a negative effect on firm performance. However, when we separate female directors into two groups, family female directors and outside female directors, we find that the latter has a positive and significant effect on firm performance. We further construct a human capital index after a detailed analysis of 15% of the total curriculum vitae of direc- tors for those in our sample we were able to find. Although the subsample is not representative enough to make general claims for the whole sample due to data con- straints, we shed some light about a potential gender bias in the development of the human capital of heirs and the corresponding impact of different levels of directors’ education and experience on firms’ financial performance.
