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Gender Differences and Firm Performance: Evidence from India

  • Aditi Roy EMAIL logo
Veröffentlicht/Copyright: 16. Oktober 2023

Abstract

Despite a growing literature investigating the effect of gender diversity of CEOs and firm performance, the answer is still unclear. This study estimates the effect of gender differences in ownership and Leadership (CEOs) on firm performance simultaneously. The paper exploits a unique data from more than 9000 Indian firms by using fixed effects and propensity score matching techniques. Findings reveal a positive significant effect of female CEOs on firm performance but no definite effect of female owners on firm performance. The effect is more prominent in progressive and high-sex ratio states in India. Third, the evidence suggests potential payoffs to firms that adopt gender-inclusive policies intended to increase the share of female CEOs in India. Results confirm no bias from unobservable covariates.

JEL Classification: D21; J16; J71

Corresponding author: Aditi Roy, PhD, School of Economics and Public Policy, University of Adelaide, Adelaide, Australia, E-mail:

Funding source: University of Adelaide

Acknowledgements

I am grateful to Benedikt Heid, Richard Pomfret, Umair Khalil, Giulio Zanella, Kym Anderson, Terrence Cheng, Lionel Page, Luca Flabbi, Sarah Dong, and Firmin Doko Tchatoka for their helpful comments and suggestions. Also, thanks to the seminar participants at the School of Economics Workshop, Adelaide PhD Summer Institute at the University of Adelaide and the Australasian Development Economics Workshop held at Australian National University. I am extremely thankful to the editor, Sandra Ludwig, and the anonymous referees for their comments and suggestions. Their input has significantly contributed to refining the paper. The usual caveat applies. The data used for the study is freely available online from World Bank Enterprise Survey (WBES). Lastly, I acknowledge financial support for this research from the University of Adelaide’s-ASI Scholarship for Doctoral Program.

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Received: 2022-02-04
Accepted: 2023-08-01
Published Online: 2023-10-16

© 2023 Walter de Gruyter GmbH, Berlin/Boston

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