Female senior managers and the gender equality environment: Evidence from south Korean firms

Abstract

This study investigates whether the presence of women at the senior management level improves the gender equality environment in South Korea. I find strong empirical support for the proposition that when the proportion of female senior managers is large, the gender gap in terms of salary and employment decreases. Furthermore, I empirically show that once the glass ceiling is cracked at the senior management level, female managers are more likely to sit at the top level of corporate management. This is suggested as the mechanism underlying the impact of the presence of female senior managers on the gender equality environment. Finally, I document that female senior managers indirectly enhance firm performance through an improved gender equality environment, while they also directly improve firm performance.