Abstract

Purpose - This research investigated the influence of family-friendly policies on the financial performance of Korean firms, with a specific emphasis on middle- and lower-level female employees. This study contributes to the body of knowledge regarding the effectiveness of family-friendly policies.
 Design/Methodology/Approach - This study used multiple regression analyses on the survey data of 604 firms from the Korean Women Manager Panel in order to examine the impact of family-friendly policies on the performance of firms. Factors associated with career flexibility, time flexibility, financial support, and cultural variables comprise the independent variables. Sales growth and return on assets (ROA) were regarded as indicators of firm performance.
 Findings - Career-flexibility policies such as parental leave and family care leave, in addition to time-flexibility policies such as working hour reduction and a 52-hour system, have a positive relationship with firm growth, while they have adverse effects on profitability.
 Research Implications - Results implies that the implementation of family-friendly policies has the potential to help employees to increase productivity and revenue. However, these policies also incur additional costs, which may have a negative impact on overall profitability. Considering the introduction of family-friendly policies implies the need for additional measures, such as devising strategies for revenue growth, to enhance profitability.

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