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Effect of gender diversity on corporate soundness and social contribution

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  • Chang Seop Rhee
  • Sohee Woo
  • Hyunjung Rhee

Abstract

This study investigates whether gender diversity within a company has a positive effect on corporate soundness and social contribution. We collect the data of female employment status, corporate soundness, and social contribution, and then we perform empirical tests using 1524 Korean firm‐year observations from 2012 to 2020. From the empirical results, we find that firms with high gender diversity have more corporate soundness than those with low gender diversity. We also find that there is a positive association between the level of gender diversity and social contribution. Our findings imply that by increasing the ratio of female employees, companies can create a more stable and rigorous corporate climate, and consequently improve the corporate soundness and social contribution. This study supports the importance of females in the workforce by presenting empirical evidence that female employment helps improve corporate soundness and social contribution.

Suggested Citation

  • Chang Seop Rhee & Sohee Woo & Hyunjung Rhee, 2023. "Effect of gender diversity on corporate soundness and social contribution," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 419-430, January.
    • Handle: RePEc:wly:corsem:v:30:y:2023:i:1:p:419-430
    DOI: 10.1002/csr.2363
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