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Managerial Performance of a Female-Owned and Home-Based Firm

Author

Listed:
  • Oladipo, Oluwasheyi S.

    (State University of New York at Old Westbury)

  • Platt, Katarzyna

    (State University of New York at Old Westbury)

  • Shim, Hyoung Suk

    (CUNY - College of Staten Island)

Abstract

Female entrepreneurship has been regarded as inferior to its male equivalent in terms of performance. Literature on gender differences in entrepreneurship focus mostly on showing the differences, but not much literature discusses where the differences come from, and how to mitigate them. This paper empirically examines the joint effect of female ownership and being home-based on owners' managerial performance. We estimate the average treatment effect of female-owned and homebased firms on return on assets (ROA) using the 2007 Survey of Business Owners (SBO) micro data. From the main estimation result, the marginal effects of female ownership and home-based business are both negative. The estimated ROA gains of female ownership and home-based business are about -37.20% and -67.17%, respectively. In contrast, we find that the joint effect of female ownership and home-based business is about 39.53% ROA gain. Our finding suggests that female-owned firms can outperform under the appropriate supporting conditions, such as if they are able to remove travel time and costs by establishing their businesses at home.

Suggested Citation

  • Oladipo, Oluwasheyi S. & Platt, Katarzyna & Shim, Hyoung Suk, 2020. "Managerial Performance of a Female-Owned and Home-Based Firm," IZA Discussion Papers 13981, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13981
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    1. Sonja Radas & Bruno Skrinjaric, 2022. "Girl Power: Creating More with Less," Working Papers 2203, The Institute of Economics, Zagreb.

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    More about this item

    Keywords

    firm performance; female owners;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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