Abstract
AbstractThis study explores the moderating role of the business environment in the relationship between top manager gender and firm performance, using firm‐level data from 29 African countries. Controlling for endogeneity and country fixed effects, we find that female‐managed firms generally underperform male‐managed firms, except among large firms where female managers excel. The performance gap is exacerbated by a weak business environment, highlighting the need for reforms to close the managerial gender gap in Africa. Strengthening the business environment is essential for improving female‐led firm performance and by extension promoting gender equality in African business leadership.
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