Female talent and corporate social performance

• Published in: International review of economics & finance Vol. 95; p. 103516
• Main Authors: Korkmaz, Aslihan Gizem, Ucar, Erdem
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01-09-2024
• Subjects: Corporate social responsibility; Female talent; Human capital; Labor market frictions; Paid family leave; M14; Labor market frictions; Corporate social responsibility; Human capital; G30; Female talent; K31; J78; Paid family leave
• ISSN: 1059-0560
• DOI: 10.1016/j.iref.2024.103516

This paper analyzes the relationship between female talent and corporate social performance (CSP). Using a sample of US firms from the COMPUSTAT database between 1991 and 2013, we investigate how state-level Paid Family Leave (PFL) laws affect firm CSP. We find that reducing barriers to female employment positively impacts firms' social performance, as measured by corporate social responsibility (CSR) scores. Our results show that firms headquartered in states with effective PFL laws have higher CSR strengths and lower CSR concerns. Additionally, the positive impact of PFL laws on CSP is more pronounced for firms included in the Working Mother Magazine's 100 Best Companies List. Our study provides important insights for policymakers and corporate leaders on the benefits of supporting female employment through PFL laws.