<![CDATA[Purpose: This study investigates the direct effect of board gender diversity on the cost of debt, and its indirect effect mediated through corporate tax avoidance, during a macroeconomic crisis.Research Methodology: Utilizing purposive sampling, a balanced panel of 60 manufacturing firms listed on the Indonesia Stock Exchange (180 firm-year observations) from 2021 to 2023 was analyzed using robust Common Effect panel regressions in Stata 18.Results: The direct effect of board gender diversity on borrowing costs is highly insignificant. However, corporate tax avoidance has a significant positive direct effect on the cost of debt. The indirect pathway is positive and marginally significant, demonstrating that gender-diverse boards increase tax-planning intensity, which creditors subsequently penalize.Conclusions: Board gender composition does not directly influence creditors. Rather, its effect is fully transmitted through strategic tax choices. During economic shocks, survival-driven cash conservation via tax planning is processed as a negative signal of opacity and audit risk by risk-averse relationship banks, driving up borrowing costs.Limitations: The study is restricted to Indonesian manufacturing firms during the abnormal COVID-19 shock, with data availability constrained by incomplete corporate interest and debt disclosures.Contributions: This research provides vital policy insights for the Financial Services Authority (Otoritas Jasa Keuangan-OJK) and commercial banks, showing that boardroom gender diversification mandates must be carefully balanced against strategic financial transparency demands in relationship-based emerging credit markets.]]>
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