Gender and Firm Performance around the World: The Roles of Finance, Technology, and Labor

43 Pages Posted: 12 Mar 2021

See all articles by Lee Allison

Lee Allison

Oklahoma State University

Yu Liu

University of Texas Rio Grande Valley

Samuele Murtinu

Utrecht University - School of Economics

Zuobao Wei

University of Texas at El Paso

Date Written: January 12, 2021

Abstract

Using the World Bank Enterprise Survey (WBES) data from 2006-2017 on 130,000 firms in 130 countries across the globe, we document that women-led firms tend to underperform men-led firms. The main contribution of this work is to shed light on three mechanisms that help explain the underperformance: finance, technology, and labor. First, women-led firms are investing less in fixed assets and obtaining less credit from banks. Second, women-led firms are less likely to use information technology to manage their businesses. Third, women-led firms tend to employ more skilled and educated workers, and are more likely to provide workers with permanent contracts, hence incurring higher labor costs. Interestingly, in our data, women top managers do not perceive themselves facing more business obstacles than their male counterparts do.

Keywords: gender, performance, business obstacles, finance, technology, labor

JEL Classification: D22, G30, J16, L25, M21

Suggested Citation

Allison, Lee and Liu, Yu and Murtinu, Samuele and Wei, Zuobao, Gender and Firm Performance around the World: The Roles of Finance, Technology, and Labor (January 12, 2021). Available at SSRN: https://ssrn.com/abstract=3764323 or http://dx.doi.org/10.2139/ssrn.3764323

Lee Allison

Oklahoma State University ( email )

United States

Yu Liu

University of Texas Rio Grande Valley ( email )

1201 W. University Dr.
Edinburg, TX
United States

Samuele Murtinu

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Zuobao Wei (Contact Author)

University of Texas at El Paso ( email )

500 W. University Ave.
El Paso, TX 79968
United States
915-747-5381 (Phone)
915-747-6282 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
46
Abstract Views
238
PlumX Metrics