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Gender diversity, gender norms and firm performance: Evidence from India

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  • Jain, Ritika

Abstract

This paper examines the effect of gender diversity on the financial performance of firms in India. Specifically, we examine two specific aspects of gender diversity- how the implementation of gender diversity across various workforce levels affects firm performance and the role of gender norms and culture in the external environment where the firm operates in influencing the relation. Using the World Bank Enterprise Survey, 2014, we use propensity score matching and instrumental variable estimation techniques to test the effect of gender diversity on firm performance. The results suggest that better women’s representation at higher levels of the workforce is associated with better performance. In contrast, women’s representation at the worker level of the workforce does not affect performance. Additionally, the state-level gender empowerment norms strongly condition the effect of gender diversity on performance. In states with better gender empowerment indicators, firms with better female representation at all levels of permanent employment also have better performance. In contrast, there is no effect of gender diversity on performance in states with worse women empowerment indicators.

Suggested Citation

  • Jain, Ritika, 2022. "Gender diversity, gender norms and firm performance: Evidence from India," Economic Systems, Elsevier, vol. 46(4).
    • Handle: RePEc:eee:ecosys:v:46:y:2022:i:4:s0939362522000681
    DOI: 10.1016/j.ecosys.2022.101006
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    More about this item

    Keywords

    Diversity; Gender; Firm performance; India; Propensity score matching;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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