Female Ownership and Firm Performance: Study of Informal Firms across Developing Countries

Posted: 10 Nov 2012

See all articles by Payel Chowdhury

Payel Chowdhury

University of California, Irvine - Department of Economics

Date Written: September 29, 2012

Abstract

This study examines the relationship of female ownership with various performance indicators and willingness to register for informal (un-registered) firms. In addition, we study if the impacts of investment climate measures on firm performance differ for male-owned and female-owned firms. Using unique World Bank datasets that capture several firm and owner characteristics, and investment climate measures, we analyze firm level data across 14 developing countries across the world. We find female ownership has significant negative associations with total sales and labor productivity, a significant positive association with the number of female workers employed by the firm, and non- significant association with the probability of access to finance. The associated coefficients have high magnitudes, ranging from 20-40%. The relationship between female ownership and firm performance indicators vary by firm size and level of educational attainment of the firm’s largest owner. These findings are further supported by a series of robustness checks.

Keywords: informal firms, female ownership, firm performance, access to finance, willingness to register, investment climate

JEL Classification: J16, J2, L21, O15, O17

Suggested Citation

Chowdhury, Payel, Female Ownership and Firm Performance: Study of Informal Firms across Developing Countries (September 29, 2012). Available at SSRN: https://ssrn.com/abstract=2173028

Payel Chowdhury (Contact Author)

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States

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