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Female talent and corporate social performance

Author

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  • Korkmaz, Aslihan Gizem
  • Ucar, Erdem

Abstract

This paper analyzes the relationship between female talent and corporate social performance (CSP). Using a sample of US firms from the COMPUSTAT database between 1991 and 2013, we investigate how state-level Paid Family Leave (PFL) laws affect firm CSP. We find that reducing barriers to female employment positively impacts firms' social performance, as measured by corporate social responsibility (CSR) scores. Our results show that firms headquartered in states with effective PFL laws have higher CSR strengths and lower CSR concerns. Additionally, the positive impact of PFL laws on CSP is more pronounced for firms included in the Working Mother Magazine's 100 Best Companies List. Our study provides important insights for policymakers and corporate leaders on the benefits of supporting female employment through PFL laws.

Suggested Citation

  • Korkmaz, Aslihan Gizem & Ucar, Erdem, 2024. "Female talent and corporate social performance," International Review of Economics & Finance, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024005082
    DOI: 10.1016/j.iref.2024.103516
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    More about this item

    Keywords

    Labor market frictions; Female talent; Paid family leave; Corporate social responsibility; Human capital;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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