GENDER DISPARITIES IN FAMILY BUSINESS GROWTH EXPECTATIONS

Abstract

This study, informed by social and liberal feminist ideas, examines the persistence of gender disparities in the performance of family-owned enterprises as control passes from one generation to the next. To assess whether male or female family business successors are more successful, we examine increases in revenue, employees, sales per employee, market share, total return, equity ratio, innovation, and satisfaction. We found a significant gender discrepancy in the selection of business leaders. Female successors often bring in more staff although earning the same as their male counterparts. When compared to their male counterparts, female successors do worse on the productivity index of sales per employee. For example, in the context of a company's succession, there are no significant gender disparities in growth expectations or levels of satisfaction. We investigate these variations by considering sexism and gendered perspectives on performance, respectively. By showing that women are equally as adept as men in managing the handoff of family enterprises, we dispel the stereotype of female inability. The results emphasize the need of working to increase the number of female corporate successors to narrow the leadership gap between genders.