Access to foreign capital can be crucial to emerging market firm (EMF) growth, yet we know little about how emerging market CFOs gain access to foreign debt capital (FDC) or its implications for subsequent strategic and economic outcomes. We draw from extensive research on board interlocks and the diffusion of strategies in our study of the top 500 Indian firms over the previous decade. We conceptualize mediated legitimacy as the means by which FDC may be legitimized for an emerging market CFO, while EMFs themselves gain legitimacy in the eyes of foreign lenders through their CFOs’ connections to other firms with FDC experience. Further, we consider moderating governance effects of ownership and board structure, as well as the second-stage impact of FDC on firm strategies and performance. We find support for our hypothesized relationships, offering new insights into research on interlocks, legitimacy and corporate governance alongside the role of the CFO and FDC in emerging markets.
