The purpose of this study is to empirically examine whether the number of female members, proportion of female employees in a company, and female employees’ working years positively affect firm value and financial performance or not.
<br>Design/Methodology/Approach I collect the sample companies’ financial data from Fn-Guide database and regress corporate value and performance measurements on 7 proxies for female employees with several control variables. A sample of 3,146 firm-year observations during the year 2013 to 2019 period is used for this study.
<br>Findings This study finds that the number of female employees, proportion of female personnel, and the female employees’ number of working years positively affects both on firm value and the performance.
<br>Research Implications This implies that hiring female employees and gender diversity within a company increase corporate value and do positively affect financial performance of the company.
<br>Also, this suggests that sufficient years of employing are required to reflect these effects. In addition, although a statistically significant and positive relationship between proxies for firm value and performance and proxies for full-time female employees is observed, there is no significant relation between proxies for firm value and performance and proxies for temporary position of female employees; this is an evidence that the types of employment, whether it is full-time position or temporary position, can also influence the positive relation between two variables. The results of this study can be used as a basis for establishing various systems and policies to increase hiring female employees with higher education and actively utilizing female human capital, and are expected to contribute to enhancing companies’ willingness to secure gender diversity
