Gender, external financing and firm performance: evidence from Chinese private firms
ISSN: 1754-2413
Article publication date: 19 October 2023
Issue publication date: 12 March 2024
Abstract
Purpose
The operational framework of external financing in the correlation between the gender of entrepreneurs and firm performance remains to be resolved. This study aims to investigate the mediating effect of external financing on gender-based disparities in private firm performance and to explore its heterogeneity within the Chinese context.
Design/methodology/approach
Based on national data from the 10th to 13th Chinese Private Enterprise Survey, this study used a bootstrap-based mediation effect model to analyze the role of external financing as a mediator in the relationship between entrepreneur gender and firm performance.
Findings
This study found that external financing is a constructive mediator between entrepreneur gender and firm performance. Heterogeneity analysis revealed that external financing plays a complementary mediation role in the impact of entrepreneur gender on performance in West China. In the tertiary industry, external financing acts as the sole mediator for the impact of gender on firm performance. Notably, this mediating effect is present in non-startups but not in startups.
Practical implications
The findings suggest that external financing can improve the firm performance of female entrepreneurs. Governments and policymakers should strengthen financial support for female entrepreneurs in West China, tertiary industry and non-startup enterprises.
Originality/value
This paper contributes to the literature on gender and corporate governance by shedding light on the mediating role of external financing in the relationship between the gender of business owners and firm performance.
Keywords
Acknowledgements
Erratum: It has come to the attention of the publisher that the article, Huang, L., Liu, J. and Huang, Z. (2023), “Gender, external financing and firm performance: evidence from Chinese private firms”, https://doi.org/10.1108/GM-10-2021-0322, incorrectly advised on the PDF version of that article that Huang, L. and Liu, J. are corresponding authors of this article. Liu, J. is the corresponding author, as stated correctly on the webpage version of the article.
This error was introduced in the editorial process and has now been corrected in the online version. The publisher sincerely apologises for this error and for any inconvenience caused.
The study was financially supported by the Fujian Jiangxia University Social Science Research Program (title: Research on the financing constraints and performance of private firms based on gender differences/JXS2020013) and the Research Innovation Team Support Program of Fujian Jiangxia University. The authors thank the editor and anonymous referees for their constructive and valuable comments that helped us improve the paper. However, any remaining errors or shortcomings in the paper are solely the responsibility of the authors.
Citation
Huang, L., Liu, J. and Huang, Z. (2024), "Gender, external financing and firm performance: evidence from Chinese private firms", Gender in Management, Vol. 39 No. 3, pp. 370-387. https://doi.org/10.1108/GM-10-2021-0322
Publisher
:Emerald Publishing Limited
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